Awesome Tax Advantages Of A Home Business!
Topics: Tax deductions, deductions, taxes, bookkeeping, record keeping, home business, expense deductions
You may be surprised at the amount of daily items that can be deducted as a business expense once you have a business in your home. The usually business expenses are the obvious deductions but even some household expenses can be deductions. You should always check with your tax preparer to be certain of the laws in your state but in this article I have mentioned many of the deductions that are legal in most areas.
The most obvious deductions are business expenses. Anything related to your business, if you have a business portfolio, introductory product pack, or monthly product purchase these are all tax deductions. Only the purchases that are required in order to get paid qualify for deduction in most states. If you have an office area in your home you can deduct internet and phone if they are needed for your business, part of the expenses of your rent (mortgage is figured elsewhere), part of your power, water, sewer, garbage & etc. as business expenses. In most states you can also deduct your insurance as long as your office is in your home. Home repair bills and the cost of a cleaning service are also deductions.
Included with business expenses would be anything to do with advertising such as business cards, t-shirts, ads, fliers, literature and anything else you may use for advertising. Training items for you are also a deduction; books, CDs, seminars and reports etc. Be sure to save receipts to prove your expenses here! You can also deduct things that your kids might help with if you pay them by check and keep records, you can deduct landscaping, maintenance such as taking out the garbage, computer work, cleaning, stuffing envelopes and any other business related expenses. Remember to keep receipts for all office supplies such as paper, pens, printer ink, office furniture, cell phone (if you use it for business), postage, extra email accounts, web hosting, computer etc.
Any business related travel or any travel in which you conduct some business can be a deduction. Plan ahead to make all travel business related. Even if you stay with family you can give them a gift of products or even money and this can be a tax deduction as long as it does not exceed the going rate for hotels in the area. Business meals are good deductions, if you meet a prospective client for a meal or coffee, or if you meet with your business partners to discuss business. Mileage is another great deduction, the IRS has mileage rates that they allow, mileage to and from meetings and trainings, and for advertising, are deductible. You do need to keep a log to prove this, but it does not have to be fancy. Just a small note book that you can make a note in each time you drive is good enough and will save you quite a bit of money for a little effort.
If you are doing pretty well and are looking for other things to count as deductions on your taxes you may want to consider 401Ks, college tuition, car lease options, charitable donations, and education savings accounts for children/grandchildren. There are many ways that you can save on taxes and you will want to use only the ones that are legal in your area and benefit you the most.
Maybe now you are thinking about the major things that you might consider as a deduction. Please do not use this as your sole guide. Your tax preparer and local laws should be the final deciding factor on deductions for your home business. Hopefully this has opened your eyes to the potential for deductions and you will be able to ask the right questions and provide the proper information to get the maximum deductions you deserve. If you plan ahead many of your everyday expenses can be a tax deduction when you have a business in your home. Record keeping is very important when you are documenting tax deductions. You don’t want to be caught with no records!
Annette Phillips has experience in a variety of areas and has been successful in supporting her family from home for 18 years while enjoying all that life has to offer. Visit this website for more information on making money at home: www.ipcgold.com
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