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Application of Income

October 18, 2011 By Leave a Comment

Application of Income

Closely related to it is another fundamental concept called diversion of income by overriding title. These two concepts have been a constant source of litigation and have knocked the doors of the Supreme Court and various High Courts on numerous occasions.

In case of diversion of income by overriding title, the income before coming to the hands of the assessee is diverted from the source itself and hence is not liable for tax. But in case of application of income the transaction is overlooked and the assessee in whose hands the income accrues becomes liable for tax. The distinction between these two concepts assumes importance as it helps in determining the liability of an individual to income tax. Once the income has accrued or arisen, the Income Tax Act (herein after referred as Act) is not concerned about what happened to it thereafter. In other words the Act is oblivious to the destination or disposal of the income.

Application Of Income
A cursory perusal of the S.60 of the Act will make it clear that unless there is transfer of the assets from which the income arises, the income arising from that asset will be included in the income of the transferor for computation of tax. The issue in Life Insurance Company v. Commissioner of Income Tax, Bombay City was whether, under S.28 of the Life Insurance Corporation Act, 1956 the surplus which is statutorily payable to the Central Government, is a permissible deduction from the surplus disclosed for the inter-valuation period ended March 31, 1963 or not?

The appellant contended that this was a case of diversion of income by an overriding charge in so far as a part of the surplus was compulsorily required to be paid to the Central Government. The Apex Court did not found any substance in the argument of the Corporation and held that the statutory obligation that has been imposed on the Corporation comes into effect only when the income accrues to the Corporation and not before that. Since the obligation has to be discharged only after the income has been received by the Corporation, there was no question of any overriding charge so as to result in diversion of any income to the Central Government. The researcher also sees in line with the Apex Court judgment. It is only a question of application of income. S.28 operates only after the surplus has reached the hands of the Corporation and therefore there is no diversion of any income by an overriding charge. In other words, S.28 provides for the manner in which the surplus is to be distributed after it has been properly determined.

The respondent in Commissioner of Income Tax, Bombay v. Sitaldas Tirathdas sought to deduct a sum of Rs. 1,350 in the first assessment year and a sum of Rs. 18,000 in the second assessment year on the ground that under a decree he was required to pay these sums as maintenance to his wife and his children. This was disallowed by the Income Tax Officer. The matter reached till the Supreme Court.

The Supreme Court made a distinction between the amount which a person is obliged to apply out of his income and an amount which by the nature of an obligation cannot be said to be the part of the income of the assessee. When the income does not reach the hands of the assessee due to diversion under an obligation, it is deductible. But on the other hand when the income is required to be applied to discharge an obligation after such income reaches the assessee, the same consequence in law does not follow. The first kind of payment is exempted under the Income Tax Act but not the second one. The second one is a case of application of income which has been received. The first is a case in which the income never reaches the assessee, who even if he were to collect it, does so, not as part of his income, but for and on behalf of the person to whom it is payable. On the facts and circumstances of the case it was held that it was a mere case of application of income to discharge an obligation. The wife and children of the assessee who continued to be members of the family received a portion of the income of the assessee only after the assessee had received the income as his own. Therefore there was no diversion of income by an overriding charge.

The testator in P.C. Mullick and Another v. Commissioner of Income Tax, Bengalappointed the appellants as executors and directed them to pay Rs. 10,000 out of the income on the occasion of his addya sradh. The executors paid Rs. 5,537 for such expenses, and sought to deduct the amount from the assessable income. The Judicial Committee disallowed the deduction. It held that whatever payments were made, were done once the income had reached the hands of the assessee and in pursuance of the obligation imposed upon them by the testator. This was not the case of diversion of income. It is submitted that the decision of the Judicial Committee in the above case rightly brings out the intention of the drafters of the Act. The Act is not concerned about how one spends his money, that is, the Act is indifferent to the destination of the income. What is of material concern is that whether the income has reached the hands of the assessee or not. Once it is in the hands of the assessee it is liable for tax.

The appellant in Provat Kumar Mitter v. Commissioner of Income Tax,West Bengal had under a contract assigned to his wife the right, title and interest to all dividends and sums of money which might be declared or might become due on account for the term of her natural life. In assessing the assessee the Income Tax Officer included the dividend paid to his wife as his income. It was contended by the assessee that the dividend which his wife received could not be deemed to be his income.. The department argued that since the shares continued to stand in the name of the assessee and the dividends had been declared in his name, the transfer of the dividend to the beneficiary was only an application of the dividend income and, therefore, the assessee could not claim exemption from being taxed on it as a part of his own income.

The Court rejected the contention of the assessee and said that since the assessee did not assign the shares to his wife he therefore, retained the right to participate in the profits of the company. He did not part with that right. So the dividend accrued to him which was later given to his wife as per the contract. Therefore it was a case of application of income.The researcher opines that Act is not concerned with the ultimate destination of the income. What is to be seen is that in whose hands income accrues. Once the income is in the hands of the assessee, he is liable for tax. In other words if a person has alienated or assigned the source of his income so that it is no longer his, he may not be taxed upon the income arising after the assignment of the source.

Diversion Of Income
The concept of application of income cannot be fully appraised without understanding the concept of diversion of income by overriding title. The following case laws would throw light on the matter. In Raja Bejoy Singh Dudhuria v. Commissioner of Income Tax, Bengal, the step mother and the Raja had entered into a compromise decree whereby a sum of Rs. 1, 100 per month was to be paid to her for her maintenance. This amount was declared as a charge upon the properties in the hands of the Raja by the Court. The Raja sought to deduct this amount from his assessable income. This was disallowed by the High Court of Calcutta. He went on appeal to the Judicial Committee.

The Judicial Committee held that the amount which the Raja paid to his step-mother did not constitute his income. This was a case of diversion of income by overriding title, as the Court had created a charge on the whole resources of the Raja with a specific payment to his step-mother. To that extent it was not his income. Further it was observed that it is not a case where the appellant is applying his income in a particular way rather it is the allocation of a sum out of his revenue before it becomes income in his hands. It is submitted that given the facts and circumstances of the case it was correctly held that the case was of diversion of income by overriding title. The assessee never received the sum of Rs. 1, 100 in his hands. Even if he received it was not for himself. He was acting as a mere collector of that income which was to be paid to his step-mother. Thus, he was like a conduit pipe between his step-mother and the resources which generated the income.

The assessee in Commissioner of Income Tax, Bombay v. C.N. Patuck, got a consent decree divorce from his wife. As a result of the compromise the assessee made certain arrangements for his two unmarried daughters. The decree contemplated a tripartite agreement between the firm of Messrs Patuck and Sons, the assessee himself and his two daughters. The agreement stated that the allowance would be paid out of the remuneration and profits payable to the assessee from the partnership firm. In the event of the partnership firm being dissolved or in the event of the retirement of the assessee from the said partnership or in case of his death the payment of the sums mentioned in this clause shall constitute a first charge on the share of the assessee. During the accounting year the assessee share of profits in the firm and his salary according to the statement of the case were first credited to his account and then the assessee made the payment to his daughters direct, though the receipts obtained from his daughters mentioned that the payments were made by the firm.

The assessee claimed that the amount paid to his daughter did not constitute his income at all and was not liable to tax. He claimed that the amount was at source diverted and ceased to be his income, because of the overriding title created in his daughter.. On the other hand the department contended that the profits were first paid to the assessee and then the assessee himself distributed the profits to his two daughters. The whole arrangement was merely made so as to ensure to the two daughters their maintenance.. The Court decided in the favour of the assessee. The decision of the Court was based on three grounds. Firstly, the very fact that the parties contemplated security for payment of the debt or obligation by the assessee in favour of his two daughters would give rise to a charge the moment the property which was to be a security for the payment is specified.

Secondly, if it were merely a case of the discharge of a personal obligation by the assessee in favour of his two daughters, then there is no reason why a tripartite agreement should be entered into. The fact that they were made parties to the agreement and agreed themselves to pay to each of the daughters the amounts of the maintenance due to them out of the remuneration and the one-third share in the profits of the partnership, clearly shows that it was the intention of the parties that the source or the profits should be bound. Therefore that part of the profits could never become the income of the assessee.

Finally, the daughters could claim their maintenance directly from the two partners out of the profits and to that extent they would have a title superior to that of their father in the profits.. The researcher agrees with the decision of the Court. What one has to see is whether the income has actually reached the hands of the assessee or not? Once it has reached in his hands there can be no diversion. But when he acts as a mere collector of the income or due to some charge the income gets diverted, he cannot be taxed for that amount.

In Diwan Kishen Kishore v. Commissioner of Income-tax, there was an impartible estate governed by the law of primogeniture, and under the custom applicable to be family, an allowance was payable to the junior member. Under an award given by the Deputy Commissioner acting as arbitrator and according to the will of the father of the holder of the estate and the junior member, a sum of Rs. 7,200 per year was payable to the junior member. This amount was sought to be deducted, which was disallowed. The appellants argued that the payment which was made was necessary and obligatory payment, and therefore the deduction should be allowed. Due to the distinctive nature of the estate, the junior member is not entitled to separate his share and collect his income directly. Hence in lieu of his share a separate allowance is given to him. That allowance therefore, cannot form the part of the income of the assessee.

It was held it was not a case of application of income. Since, the junior member cannot claim himself to be a member of the coparcenary with the assessee, the assessee was merely acting as a collector of the allowance on his behalf. The Court further substantiated its decision by pointing out the fact that the junior member cannot legally claim an increase in the allowance even if the income of the estate materially increases.

The researcher is of the opinion that this case should be distinguished from instances where an allowance is given by the head of the Hindu coparcenaries to its members by way of maintenance. In that situation the income generated by the resources of the Hindu joint family comes to the hands of the karta of the family which he distributes among the coparceners as per their needs. Unless there is a partition in the family, the coparceners who receive separate maintenance, still remain the members of the joint Hindu family. Therefore, providing maintenance allowance to them is a case of application of income.

The Supreme Court in Moti Lal Chhadami Lal Jain v. Commissioner of Income Tax, observed that what is of cardinal importance is the nature of obligation by reason of which the income becomes payable to a person other than the one entitled to it. Where the obligation flows out of an antecedent and independent title, it effectively diminishes the total income of an individual and so it would be a case of diversion. Whereas when the obligation is self imposed or gratuitous, it is only a case of application of income.

From the above observation of the Apex Court, it is submitted that there is a difference between an amount which a person is obliged to apply out of the income and an amount which by the nature of the obligation cannot be said to be the part of the income.

The issue in Gallotti Raoul v. Assistant Commissioner of Income Tax was whether the social charges which the French nationals are liable to contribute compulsory be deducted from salary and then be taxed or the gross salary without adjustment of the social charges be taxed?

The argument which was put forth by the appellants was that the amount that was contributed by the employer to the social security was similar to a primary charge existing on the income and therefore an overriding title existed on the salary income of the employees. On the other hand it was contended by the respondent that since the contributions were made only after the receipt of income, it was a case of application of income.

The Supreme Court held that the since the affiliation was compulsory in nature, it made the social security organization an earning partner alongside of the assessee. In other words, the assessee earns not only for himself but also for the social security organization. Therefore on the amount which had to be contributed towards the social security organization, the assessee had no right over it at all and thereby no domain on it. The researcher is of the opinion that the Court had aptly decided the above case. This is because, even before the assessee could claim his salary, the social security charge is set apart for being handed over to the social security organization and thereby the employee never has the chance of even touching it. It is rightly an instance of diversion of income.

Conclusion
Income emanates from a source. Income is got through receipt or accrual or it is deemed to accrue. Under the Income Tax Act, once the income has come into existence it is liable for tax. Taxable event is the source generating the income. When I earn income, I set apart it for certain things. It may arise under a contractual obligation or statutory obligation or involuntary/voluntary disposition. It is not every obligation under which an income is applied is taken into account while computing tax. The emphasis is on the nature of the obligation. If the nature of obligation is such that the income gets diverted before it reaches the hands of the assessee due to operation of law or due to creation of charge, then such amounts are deductible while computing the tax liability of the individual. Rational behind this is that presence of an independent title effectively slices away a part of the corpus of the right of the assessee to receive the entire income. On the other hand if the obligation is self imposed, it is a mere application of income.

Due to the ingenuity of the people, S.60 has been provided in the Act. The section tries to curb the mischief whereby individuals try to escape tax liability by transferring the income. Unless and until the source has been assigned to someone else, it will not fall within the domain of diversion of income. The test is to see precisely at what time the transfer had taken place. If transfer had taken place after the accrual of income then it is an application of income. But if transfer has taken place after the assignment of source then it is not application of income. There exists a difference between an amount which a person is obliged to apply out of his income and an amount which by the nature of the obligation cannot be said to be a part of the income of the assessee. All this has to be seen in the broader context of the Act that the Act is nonchalant about the destination or disposal or what happened to the income once it has accrued in the hands of the assessee.

Written by mohanrsca
Professional writer writing on the topics of beauty,fashion,health,friend,love

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EBay Income Possibilities.

October 17, 2011 By Leave a Comment

EBay Income Possibilities.

EBay Income Possibilities.

If you’ve ever read an article about eBay, you will have seen the kinds of incomes people make – it isn’t unusual to hear of people making thousands of dollars per month on eBay.

Next time you’re on eBay, take a look at how many PowerSellers there are: you’ll find quite a few. Now consider that every single one of one of them must be making at least ,000 per month, as that’s eBay’s requirement for becoming a PowerSeller. Silver PowerSellers make at least ,000 each month, while Gold PowerSellers make more than ,000, and the Platinum level is ,000. The top ranking is Titanium PowerSeller, and to qualify you must make at least 0,000 in sales every month!

The fact that these people exist gives you come idea of the income possibilities here. Most of them never set out to even set up a business on eBay – they simply started selling a few things, and then kept going. There are plenty of people whose full-time job is selling things on eBay, and some of them have been doing it for years now. Can you imagine that? Once they’ve bought the stock, everything else is pretty much pure profit for these people – they don’t need to pay for any business premises, staff, or anything else. There are multi-million pound businesses making less in actual profit than eBay PowerSellers do.

Even if you don’t want to quit your job and really go for it, you can still use eBay to make a significant second income. You can pack up orders during the week and take them down to the post office for delivery each Saturday. There are few other things you could be doing with your spare time that have anywhere near that kind of earning potential.

What’s more, eBay doesn’t care who you are, where you live, or what you look like: some PowerSellers are very old, or very young. Some live out in the middle of nowhere where selling on eBay is one of the few alternatives to farming or being very poor. eBay tears down the barriers to earning that the real world constantly puts up. There’s no job interview and no commuting involved – if you can post things, you can do it.

Put it this way: if you know where to get something reasonably cheaply that you could sell, then you can sell it on eBay – and since you can always get discounts for bulk at wholesale, that’s not exactly difficult. Buy a job lot of something in-demand cheaply, sell it on eBay, and you’re making money already, with no set-up costs.

If you want to dip your toe in the water before you commit to actually buying anything, then you can just sell things that you’ve got lying around in the house. Search through that cupboard of stuff you never use, and you’ll probably find you’ve got a few hundred dollars’ worth of stuff lying around in there! This is the power of eBay: there is always someone who wants what you’re selling, whatever it might be, and since they’ve come looking for you, you don’t even need to do anything to get them to buy it.

So you want to get started on eBay? Well, that’s great! There are only a few little things you need to learn to get started. Our next email will give you the lowdown.

Written by clost67

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Diversified Income: Protecting yourself in a down economy

June 24, 2011 By Leave a Comment

By Doug Conklin, MBA

Have you ever heard the phrase “Don’t put all your of eggs in one basket”?  Often it’s said when discussing investment strategies.  Diversify they say.  Spread your investments across an array of investment options – stocks, bonds, mutual funds, precious metals, real estate, etc.  The idea is that all investments have some level of risk, some higher than others and some more influenced by economic changes and world events.  Having a diverse portfolio protects and minimizes the opportunity to lose everything due to one or two worldly events.  Well, the same thinking should apply to how you plan your income and where it comes from because, again, you “don’t want to put all of your eggs in one basket.”

The current recession offers some daily reminders, often personally painful ones, of the affects a single “one basket” income strategy can have.  Most Americans rely on the income from a single source – their job.  In a recession we, as employees, see jobs disappear. Today, our national unemployment rate is hovering at just below ten percent. Most likely you or someone you know is a victim of this economy.

In a December 2008 USA Today Gallup Poll, 60% of those polled said today’s economic situation is the biggest crisis they have faced in their lifetime.  The Baby Boomers are headed towards retirement age and these are the years of their highest income-earning potential yet their savings and investments are shrinking AND they’re losing their jobs!

 So what can you do?  DIVERSIFY. . . .now!

Donald Trump has written “The first thing I learned is when times are tough, you need to hedge your bets – you need to diversify.  If you don’t do what I did, and diversify your income, you will most likely see your net worth diminish.  Worst case, you will lose everything.”  Diversification of income suggests we consider new creative opportunities for creating new and multiple streams of income. This means exploring new income opportunities to enhance or replacement the single income source of a job.

So what are the options?

-          Find a new and/or second job

-          Learn a new skill and start a new career

-          Create a revenue-generating “product”

-          Become entrepreneurial and start your own business

Finding a new and/or second job

Finding another job is easier said than done especially in an economy where 9 – 10 percent of the workforce is out of work.  The opportunities are just not there in today’s traditional job markets.  People tend to be forced into finding anything in order to keep a roof over their heads, the lights on, and food on the table.  Second jobs tend to be low paying and difficult to sustain for any period of time.  Quality of life goes down significantly.  Staying in the “I need to find a job” mindset is not income diversity and it does not give you control of your income source.

Learning a new skill and starting a new career

Our government tends to promote the idea of “re-training” the workforce to be able to enter into new fields of opportunity.  While the fundamental idea is good, changing a career or training for a new skill takes time and money.  I have not seen a lot of free accelerated education programs being offered!  But even if you are successful in going down a new career path, you start at the bottom and still end up with a single source of income. Again, this is not a diversified income strategy.

Creating a revenue-generating “product”

Do you have an idea or knowledge that others would pay for?  Have you ever thought of writing a book or holding a seminar to share your knowledge?  This is a great way for diversifying income.  This ties into the next section in terms of becoming an entrepreneur.  The opportunity to pursue “invention”, be it a product, service or knowledge is available now more than ever, however most people never put the time or energy in discovering how they may succeed down this path.  When attempted as a part-time pursuit, the majority of people won’t commit their free time to discover, develop, and engage the process.  If fact that is why most of us have said at some time in our lives, “I thought of that years ago” as we witness someone else making money with “our” idea!

Becoming an entrepreneur and starting your own business

An entrepreneur is someone who puts their money to work in order to create income. Buying real estate, investing in a franchise, or starting a network marketing business, are all entrepreneurial actions.  In 2003, a Federal Reserve’s Survey of Consumer Finances indicated that families with any entrepreneurial activity, that is, those reporting private business ownership or a self-employed status, had median net worth value of more than five times that of families without entrepreneurial activity.

Real estate investing provides two financial opportunities. The first relates to equity gained by selling a property for more than what you bought it for.  This is typically a long-term investment strategy, although the last ten years have given a lot of press to the idea of “flipping” houses for quick returns.  The second income opportunity through real estate comes from rental properties.  Positive cash flow from rental properties is certainly a diversified income strategy.  The problem right now with real estate investing is the volatility of the housing market and the instability of the banking (lending) systems.  Today it is not easy to buy property, especially investment property.  Banks want very high personal credit ratings and significant money down, 20 – 30% or more of purchase price.  Unless you are an experienced real estate investor with available cash, real estate as your first choice to diversify your income is not recommended.

Another entrepreneurial venture is the start your own business and work for yourself.  Often people pursue a franchised business as a way to do this.  Franchises are attractive in that they are “turn-key”, meaning the company has already developed the brand, designed the store front, determined the offerings, etc.  All you have to do is operate and promote it at a local level within the franchise guidelines. Subway is a popular example.  Franchises cost money, sometimes a lot of it.  The more successful the chain, the more expensive it will be to buy into.  To get into a franchise that has an established brand, you can expect to fork over in excess of fifty thousand dollars.  Beyond this initial start up investment realize that you will need to be financially prepared for general business operating expenses such as lease costs, insurance, advertising, payroll, etc.  Additionally many of the larger franchisers, like Krispy Kreme Donuts, require past experience that demonstrates business success.  No franchiser wants an image of failure.

Limited money and limited-to-no experience can be a deal breaker.  But let’s say you are successful and get your dream franchise. Now consider this – a large majority of franchise owners end up being the primary workforce of their own business.  In other words, you are working for yourself, literally WORKING for yourself. So you got out of your 9-5 job only to replace it with a 24/7 burden. You’re trading your time for money and often you end up making less money per hour than you had thought.  Work-life balance can become an issue.  As far as a diversified income strategy – it’s possible, but only if you can separate yourself from the day-to-day operation so you can support your other sources of income.

The final option is perhaps the best option in the current economic landscape – start a network marketing business.  Donald Trump writes “When some industries fail, others take off.  For example, when the real estate industry tanked in the early 90’s, the network marketing industry exploded.  During hard times, people with an entrepreneurial spirit flock to network marketing opportunities.”  Today, Network Marketing (a.k.a. MLM or Direct Sales) is a very valid multi-billion dollar industry.  As an income diversification option, it is perhaps the most viable solution to the majority of people looking to enhance their current and future financial status.

The network marketing industry is one of the fastest growing business models in the world. It has changed quite a bit over the last ten years with it being validated through support from the likes of Robert Kiyosaki (Rich Dad, Poor Dad) and Donald Trump (billionaire entrepreneur).  Additionally, some proven well-respected corporate leaders from traditional Corporate America are now heading these companies.  One great example is Bill Farley, retired CEO of Fruit of the Loom and recipient of the coveted Horatio Alger Award of Distinguished Americans.

Why is network marketing a good option for diversifying your income?  First, it generally requires a low investment for you to start your own independent business.  Secondly, the company handles the burden of operating the business, not you.  They develop and produce the products and services, they handle the logistics and distribution, and the best companies develop and provide you the tools, education, and support you need to be successful.  There are hundreds of network marketing options available today.  It is important that any business you engage in, you find one that you have a personal passion or commitment for.  Because there are so many options, it is likely that you can find a company that offers a product or service that meets your needs.  But chose wisely, not all companies are positioned for long-term growth and success. And take the time to understand the legitimacy of its leadership team and compensation plan. Lastly, you control your personal investment of Time.  Network marketing can be worked part time or full time but it does require engagement and some level of effort.  The benefit here is that you can get started while you still have your job.  Networking Marketing is not a “money for nothing” or “get rich quick” industry but if embraced, can provide you significant income to enhance your financial outlook.

Diversified income is your path to continued personal and financial growth.  Without some diversity in your income source you are living at the risk of having “all of your eggs in one basket.”  Take control of your financial wellness.  Take action today to eliminate your potential of becoming an economic statistic!

[For more information or guidance on selecting a diversified income plan that’s right for you, you can contact Doug by emailing him at incomeprotection@yahoo.com or calling (661) 263-7366]

Written by DougConklin

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What You Always Wanted To Know About Second Income Ideas

June 24, 2011 By Leave a Comment

The idea of a second income is that you do not have to give up your primary income. Here we will talk about a few second income ideas where you can use the Internet to create additional income around your full-time job.

1. The Internet is great in that you can start a website to sell products and be open for business 24 hours a day 7 days a week. Even if you go to work for eight hours your Internet business can create a second income for you while you are gone. You will quickly understand the possibility of your second income overtaking your primary income someday when you grasp this concept.

2. Making money on the Internet as a second income is easy to do because you do not need your own products. The fastest way to get started with this is to join programs that offer products for you to sell.

Ways to do this include affiliate marketing, network marketing, private label rights, resell rights, and so on. These are all great ways to create a second income because you concentrate on selling the products and nothing more.

3. The Google Adsense affiliate program is a popular way to make a second income today. Google is the largest search engine in the world and will pay you to place ads on your websites for them.

It is simple as all you need to do is copy and paste a snippet of html code on the web page where you want it to appear. Google offers tutorials on how to do this.

You do not have to sell anything to make money which is the great thing about this. You make money whenever someone clicks on the ads that Google brings up on your website.

4. Tjobs.com is a website that brings employers and employees together. Telecommuting has become a popular way to make money from home and you can do it on a part time basis. This website offers a lot of great jobs you can apply for although you will need a skill based on what the employer is looking for.

5. Outsourcing has become a popular way for Internet businesses to get their work done. If you have skills such as writing, website design, graphic design, customer service, and so on this presents an opportunity for you to create a second income.

To sum up then, thanks to the Internet creating a second income is not hard to do. These are several second income ideas to help you get started.

Cynthia Minnaar invites you to visit her Online Home Business Ideas website where you will find a variety of Second Income Ideas to help you get started.

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Five Ways To Make A Second Income From Home (Ever Hear Of Social Media Manager?)

June 24, 2011 By Leave a Comment

Often it is quoted that the greatest fortunes are made in the worst economies. Well, here are five hot jobs that did not exist 10 years ago and have the potential to make you a lot of money. Social Media Manger was just posted on the major job websites in the first weeks of this year.

So here are the five jobs that can bring you a solid second income from home.

Start an ecommerce website – if you want to make a good second income from home then starting your own web store is one way where many have found tremendous success. Starting an ecommerce store is not hard to do, and the cost is minimal to get up and running. There are plenty of programs on the internet that can help you get your own ecommerce store up and running. You will be seeing a second income in no time.

 

Flip Websites – Flipping websites is an extremely fun way to make a second income from home. You can either buy websites, build a little traffic and then flip it for a profit or you could buy a website as a more long term investment. Either way you will have a great time making a second income. Check out a website called Flippa. It has websites for sale and you can browse through their inventory without an account. For nothing else it’s fun to see what kinds of websites are being sold and what is considered valuable “virtual real estate.” If you are more on the creative side then you might want to get into web design and sell your own sites on places like Flippa.

 

Flipping Domains – Somewhat of the same creature as number 2, but is still a small internet business all onto itself. Domain flipping can be a little like following the stock market. Some domain names are like penny stocks while others are like blue chips. Values are based on availability many times.  An example would be the numbers 0-9. There are only so many combinations of those numbers you can have, making it extremely valuable to the person who own what is called an NN.com. (Two number). If you are looking to make a second income then flipping domains might be the perfect job for the right personality.

 

Social Media Manager – So what is that exactly? Well you might have some idea , but this exciting and profitable profession has only been posted on the major job sites since the beginning of this year. What makes this such a great opportunity to make a second income is that there is such a high demand but not many ready to fill the shoes. Think about it. Almost no one knew the impact social media would have on our society and how quickly it would spread. Because of this fact all businesses now know that they need a social media manager but no one has the training. With just a few days of training and a little social media know how you could be making between – an hr. Not bad for playing around on Facebook and Twitter.

 

Cell Phone Marketing Affiliate – this is perhaps the most fun way to make a second income from home with the potential to be the most lucrative. While everyone focuses on the social media phenomenon cell phone marketing has quietly been lurking behind the scenes. The potential for this market is so enormous due to two factors –

 

1. No competition.

 

2.  2.5 billion more users than the Internet.

 

Are you starting to see how a cell phone marketing affiliate can make big profits here? Not to mention that the clicks are about the tenth of the price of Facebook, Yahoo and other similar ad platforms. If you have any doubt about the potential of this second income opportunity then just ask Google why it bought the largest cell phone platform on the web.

 

So if you are looking to make a second income from home then these are definitely five jobs you will want to explore. If you are interested in playing on sites like FaceBook and Twitter then perhaps Social Media Manager would be perfect. If you are more into playing the market then maybe you will find domain flipping more your style. The fact is that new positions like social media manager are popping up all the time.

 

If you want to know more about these and other internet based opportunities then just click on the link in the resource box below. My close friend Christopher Morro built this site and has over forty free trainings on how to start your own small internet business from home. Go now and learn about all the ways you could be making a second income from home.

 

Damion Drake has always wanted to “crack the code” when it came to making money on the Internet. Well now he is excited to bring you an amazing resource site from his close friend Christopher Morro; http://www.smallinternetbusiness.org/ which helps people like you get started with their own small internet business. Take advantage of Chris’ extensive free video trainings as well. Over 40 videos in all.

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