Home Based Business

Taxes: Home Based Business Tax
Deductions

The majority of articles on the benefits
of a home business don't often talk
about the subject of taxes and how you
can actually save money if you have
knowledge of all the tax benefits
offered a home based business. Online or
off.

What most people are not aware of is
that even a small home business can
actually save you hundreds, even
thousands of dollars in tax deductions.
We all have to and should pay our taxes.
But as Ronald Mueller, MBA, PhD says:
"It's how much you keep that counts, not
how much you make".

Small Businesses Create 70%PRCTG% of the U.S.
Job Growth

Even a small part-time business can
qualify for more tax benefits than any
other category of taxpayer. As president
George W. Bush said "Small Business is
the backbone of the American economy".

These Are Legitimate Tax Breaks

1. Authorized by the U.S. Congress

2. Publishes in the IRS code

3. Approves by the Federal Tax Court
rulings

What Are Some Legal Business Deductions?

1. Business use of your car or truck

2. Cell phones and other electronic
devices

3. Business travel with family

4. Portion of your rent or mortgage,
repairs, home maintenance

5. Gas, electric, other utilities

6. Meals, entertainment

7. Computers, equipment, furniture

8. Marketing tools, supplies, meetings

9. Have your children or grandchildren
work in your business

10. Many other deductions are available

How Do You Qualify For These Tax
Deductions?

1. Have a legitimate home business -
consulting, child care, direct sales,
beauty salon, Internet marketer, MLM

2. Profit - show your intent to make a
profit, you do not actually have to make
a profit to take these deductions

3. Treat your business as a business,
not a hobby. Work on a regular and
consistent basis.

4. Document your income, expenses and
activity. Brief notes are usually
adequate

If you meet these four requirements, you
probably qualify for thousands of
dollars in tax savings every year.

Get Your Tax Savings Any Time of Year

You can put an extra %300 to %600, maybe
more in your take home pay. Just go to
your employers payroll office and
up-date your W-2 (based on your added
tax savings with a home business) to
increase your take home pay.

These savings are frequently enough to
pay for the start-up cost of your
business. To take advantage off all
these home business tax benefits consult
with a tax expert who is familiar with
home based business tax laws.

The majority of articles on the benefits of a home business
don't often talk about the subject of taxes and how you can
actually save money if you have knowledge of all the tax
benefits offered a home based business. Online or off.

Technorati Tags : business these benefits deductions

Originally posted 2009-05-08 20:29:31. Republished by Blog Post Promoter