|
A Home-Based Business Can Cut Your Taxes Considerably |
Written by BraveHeart Woman
Saturday, 02 June 2007
|
Home-based business entrepreneurs have many more potential deductions available to them than the everyday taxpayer. For people who are also still employed and are doing a business on a Part-time basis from home, you can start reducing your tax burden immediately. For a single person saving $3,000 is well within reach, and for a family of four that amount can easily exceed $7,000 according to ‘The Tax Times'. It is like receiving an increase to your income simply by maximizing your tax deductions. Tax professionals who specialize in home based businesses know of over 200 legal tax breaks you can take advantage of. The key to maximizing your deductions is knowledge of what the IRS permits, and taking the time to religiously keep the proper records and receipts. The good news is that this information is readily available and that the record keeping only takes a minute or two a day We will summarize the 5 most popular deductions here: 1. Automobile When driving for you home based business you can deduct close to 49 cents a mile from your taxes. Anytime you go somewhere, even to the grocery store, if you engage in business activity such as handing out a business card, flyer or CD your mileage is tax deductible. Keep a supply of prospecting materials in your car. More opportunities include a stop to the printers or office supply store. Simply keep a notebook in your car to record your mileage and the business activity you are engaged in. Leasing your vehicle can bring a much greater write-off than if you own your vehicle. 2. Travel When traveling to attend a business meeting, convention, seminar etc., your plane fare, lodging and more are all legal deductions. Many savvy business people combine business travel with vacation time and write the bulk of the trip off. The only requirement is that more than 50% of your time be invested in business related activity. 3. Home Office & Business Supplies: Whether it is a spare bedroom or the dining room table, if you spend about an hour a day at least four days a week in your office at home you can deduct a portion of many of your home expenses. In addition, things like equipment for your office (computer, copy paper, pens, furniture, etc) are fully tax deductible. Adding things like a second phone line or high speed internet access for business are also included. 4. Entertainment & Meals: Most any meal out in which you discuss your business with another person can be a business expense which allows you to deduct 50% of the cost of the meal, and tip. These meals can be with your friends, family, as well as the other prospects you wish to communicate with. If you want to entertain customers, or potential prospects from home those expenses can be deducted up to 100%. 5. Medical: Imagine being able to write off all your medical and dental expenses, your health insurance premiums and eye care needs. This one benefit alone makes owning a home based business a no brainer. It is also another good reason to hire your spouse and children to assist in your enterprise because it can extend these benefits to your entire family. Your spouse can reply to emails, pay bills, discuss marketing strategies, your kids can stuff envelopes, put paper in the printer - you get the idea. This article is not legal tax advice so consult with a tax professional that specializes in small business and educate yourself with information from people like Sandy Botkin or Thomas Stemmy CPA to make sure your getting all the deductions you are legally entitled too - it is well worth your time. Businesswoman, Friend, Collaborator, and Team player, Debbie Amon fulfills her Entrepreneurial Calling by offering a great service that enriches the lives of others. Together with other fellow BraveHeart Community members, her goal is to empower Women to be multi-dimensional success stories and inspiration to others. Be Sure to Visit: Be a BraveHeart Woman Article Source: http://www.ArticleBlast.com |
You are welcome to publish this article free of charge on your website, newsletter, or e-zine, provided:
- You don't change the article in any way
- You include the entire article, including the "about the author" box
- All hyperlinks must remain intact, including email addresses, and the link to ArticleBlast.com at the bottom
- In doing so you agree to indemnify the article's author, and ArticleBlast.com and its directors, officers, employees and agents from and against all losses, claims, damages and liabilities which arise out of its use
- It is also recommended that you provide a courtesy copy of your publication to the author of the article
