Yellow Pages

[Jon Page]

Hello Jim ! !

A business line is in addition to the personal line, the feds won't allow
a pro-rated deduction for *combination* telephone lines. If it is to your home,
even if a business line, the feds won't allow a single line to a dwelling to be
deductable (actual long distance calls are), you need the second line.
This comes in handy for internet access also. My internet account is on the
second line with call forwarding on a busy signal to the first line.
This way if I get a call while online, it'll be transferred to a line with
call-waiting.
It also makes for easier accounting where the second line is all business exp.
I have never advertised in the yp. Fortunately I've been getting all the
work I can
handle. I actually refer a lot of calls to those in the yp, and since they
don't like
the repair work; they send that to me. Works well.
Jon Page
Harwich Port, Cape Cod, Mass. (jpage@capecod.net)
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At 01:18 PM 4/26/97 -0400, you wrote:
>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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