While many of our Dealers start their businesses with CTi on a part-time basis to create a secondary income, let’s not forget the secondary income that can be had by anyone running a business.
Business owners have the ability to take products and services used both in their business and personal lives as a tax write off in many cases. Cell phones, auto payments and other types of expenses that are used both for personal and business use can be written off fully or partially depending on the circumstances.
To give you an example of how this provides a secondary income, consider the truck payment of $400 monthly for a business owner who uses the truck 75% for business and 25% personally. Over a year’s period of time, he will pay $4,800 of which $3,600 will be considered a business expense. If the business owner is at a 25% tax bracket and can write off the $3,600 in truck payments through his business, he has saved himself $900 in taxes.
Add this up across any number of expenses that can be considered for a business and you can see where the secondary income can add up.