Wally; Perception, from the customers point of view, plays a large part in our business life. A Tech with an ad in the "yellow Pages" is seen as more 'professional' than is one without an ad. For those techs who do not need, or perceive a need, for an ad, good for them. An ad contributes to your credibility, in the eyes of the public by saying "I'm in business and not doing this as a hobby". As for the economics of an add, lets look at the figures; 1. Personal line you have now. 15.00 2. Proposed business line 60.00 3. Difference 45.00 Now let us assume that you are in the 28% tax bracket. The business line would allow you to deduct the full amount of the phones basic cost from your Gross income. Those figures would work out to; 60.00 X .28 = 16.80 (Tax Savings) The cost of the personal line is not deductible and you would, do, pay; 15.00 X .28 = 4.20 (income tax paid on personal line costs) Putting this all together looks like this; 1. Business line 60.00 2. Personal line 15.00 3. add. BL costs 45.00 4. less Tax savings 16.80 5. sub total 28.20 6. credit, for income tax you will not pay on personal line 4.20 True cost of Bus. Line 24.00 So Wally the true cost of your new Business line would be 24.00 per month and the question then becomes rather different doesn't it ? Just a thought on your problem. Jim Bryant (FL)
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