1: Tax Advantages Business Deductions
To qualify as business deductions, expenses must be reasonable and necessary.
taxpayers are required to maintain accurate books and records.
The records must be sufficiently comprehensive to include the types and sources of income, profits, losses, costs, expenses, and the justification for the tax deductions. Your records should include such things as bank statements, canceled checks, receipts or invoices, statements, credit cards, newspapers and records checks. Here are some examples of what could be deduced. Remember … Also consult with a professional first.
Tax Deductions for Home based business
Nobody likes tax time, but owning a home business can actually save you thousands of dollars a year in taxes by allowing you to convert personal expenses in allowable deductions, legitimate.
Most tax deductions your business can legitimately take, the lower your taxable profit will be. For example, if you earn $ 100,000 per year from their work and home-based business as a whole, but has $ 15,000 in allowable business deductions from your business, you only pay tax on its net income of $ 85,000. Tax rate of 30%, which could save you $ 4,500 in federal taxes.
We recommend you talk to your accountant about allowable tax deductions, but here are some tax strategies to consider: Costs
You can keep track of and deduct all expenses related to the actual company. Again, make sure you get the exact information that applies to your circumstances.
Education Expenses / Training
costs of training sessions, training programs and manuals, books, online training subscriptions, etc.
legal and professional fees, commissions paid lawyers, tax professionals or business consultants
Entertaining You may deduct a certain% of the cost for entertaining existing or potential customers, if well "directly related" to the business, and discussed business, or "associated with" the business and entertainment takes place immediately before or after a business discussion. (Take note of the people involved and the business purpose.) Travel
When you travel for business, you can deduct many expenses, including the cost of airfare, operating costs of your car, car rental, taxis, accommodation , meals, shipping business materials, dry cleaning, telephone calls, faxes and advice. It is well to combine business and pleasure when business is the main purpose of the trip. But if you take your family along, you can deduct only your expenses, just as if you had traveled alone.
interest and carrying charges on credit cards and business loans are fully tax deductible. Computers and Software
Check with your accountant about the rules that apply to your business.
charitable contributions are deductible Rules vary depending on how your business registered. Get the details that apply to your business.
All costs associated with advertising or promoting your business are deductible, ie, business cards, classified ads, yellow pages, brochures and flyers, etc.
This could be one of your most valuable deductions. To qualify, a percentage of your home must be used "exclusively and regularly" for your business.
Often overlooked expenses related businesses
Long distance services. Improved
costs your office space.
A percentage of all household expenses, including property taxes, mortgage interest, homeowners insurance, utilities, property maintenance, alarm systems, snow removal, lawn cutting, etc. Furniture and office equipment
– you purchased some desks, chairs, computers, files, lamps … Until a certain amount may be deducted in a year. The homeowner insurance
, utilities and related expenses based on the percentage of use in the home office.
home maintenance – would be deducted on a percentage basis.
snow removal and lawn maintenance.
NOTE: If there is any possibility that you will sell your home within the next few years, talk to your accountant about the tax consequences.
Note: This list of business expenses is not inclusive. If the item you are thinking of using as a business tax deduction is not in this list, that does not mean it is not a legitimate business expense. Check with your accountant business expenses
Accounting and legal fees (related to business activities) Expenses Advertising expenses
Bank Charges Business Taxes and Business Licenses Collection Agency fees
Conference and Convention rates
Consulting expert (consultant fees, for example) Interest expense
(with money borrowed to run your business) costs
Insurance (for buildings, machinery or equipment) fees
ISP (commercial use)
Membership Dues (for organizations related business)
Food and entertainment expenses
office expenses Rent Office
Shipping and Mail raw private
Health Service Plan (PHSP)
Promotion Expenses Property taxes
repair and maintenance expenses
employee salaries, including salaries of family members
Phone Expenses / Telecommunications
More reasons to work from home.
2: Personal freedom to come and go as you like.
you ever just want to spend a day with your family? Did you ever want to attend a special funeral, but had to work? What about visiting someone in the hospital? Can you have a few free hours in the day? This is one of the best reasons to have a home business … You are able to manage their own time. This does not mean working less; rather it means ease of programming time.
3: You get to keep the profit. All of it.
This needs no explanation. If you work hard, if you are committed to your business, you will reap the benefits … And you also have to keep the profit.
4: No Boss.
The stress of working for an unjust and selfish boss can be tremendous. It has even been suggested that this type of stress can lead to heart disease. Work stress was the cause of marriage breakdown ups. Some people just can not go home at night and leave the issues related to their work in the office. They bring their worries, fears and frustrations home with them … And the whole family suffers under this strain. I had a wonderful boss for 25 years. That changed. I work from home now.
5: No stress on co-workers.
Numerous studies show that office stress is associated with susceptibility to diseases such as colds and flu including carpal tunnel syndrome. You spend 8 to 10 hours at work. If he does not get along with your co-workers, if there are a lot of office politics these hours 8 hours can seem like an eternity. Office politics and employee dissention can eat away at the inner core of your being.
6: You have the opportunity to raise their own children.
By choosing to work at home, you can choose your own schedule and personal business hours to meet your needs. Many home business entrepreneurs successfully will also hire nannies to care for their children while working in his home office. They love to be there for their children and still can devote the hours needed for their work.
7: You get to be creative.
Nobody can limit their talents. You can outsource what you are not good at. Instead, you can concentrate on what you are good at.
8: No rush traffic or worry about driving in adverse weather conditions hours.
Working at home means that you wake up and look out the window; you either smile or frown at what you see and go get a cup of coffee. You watch the news; You see traffic problems, and then go to work, at home.
If you have children in daycare, you know very well the stress of being on time to pick them up after a long day of work. Daycare workers may love to take care of your little treasures during the day … But, come a certain time of night, and they want younger gone. Many daycare workers charge a large fee for overtime, and rightly so, but many also get very upset when children are picked up late.
9: Not being bound by the demands of another.
Have to work when asked to do overtime? He happens to be worried about losing your job if you fail? Do you feel pressured to work on their days off? Do you make plans to be with her family only to have your boss veto your plans? Working at home means you are able to schedule their own time.
10: Most importantly … You choose with whom to work. You choose how you work.
Always remember, work at home does not mean working less.
A very special reason … Especially at this time of year to start a home based business is TAX BENEFITS. Keep your hard earned money to Uncle Sam's pocket