Running a home based business reaps many wonderful tax deductions that other businesses some times can not claim. Unfortunately to many small business owners finish
up paying the government taxes every year because they are unaware or several small business deductions that are available.
Most of the instant any expenses that are related to your business could be
added as a deduction on your taxes. If you do not pay taxes through out the year, deductions may help you from paying a large amount of taxes each year and might
also adjust earned income. Try to avoid paying large amounts of taxes or owning any funds
by keeping track of simple things!
Each doing business is
a bit different so be sure to mention these ideas to your taxation
advisor or accountant to see if your business may qualify for these deductions.
1- If you join any business or purchase into any franchise, the expenses such as kits, or franchise fees might
be claimed as a deductions.
2- Business Supplies. Be sure to save all receipts for any supplies you purchase for your business make use of
. Computer paper, business cards, pens, catalogs, or any items you purchase and make use of
for your business.
3- Advertising- Most branding might
be claimed on your taxes. Keep all receipts for any newspaper ads you might
run, or any promoting you do online. Advertising is a business expense and in most cases may be written off.
4- Items Given Away- Keep a list of any items you may give away, and the costs of these items. Most freebies might
also be written off.
5- Phone bills and internet access- If you have a phone line for business utilize or have the internet in your home or office for business utilize, save all receipts for each bill paid. These items are business expenses and may also be written off.
6- An in home office- If you have an office in your home, contruct
sure to let your tax advisor know. Using a room in your home as an office may also be added on taxes.
7- Long distance calls- If you build any long distance calls that are related to your business, contruct
sure you keep all phone bills showing the calls and the amounts charged. If these calls are related to your work, the cost of the calls may also be written off in most cases.
8- Returned Checks and Bank Fees. If you incur and bounced checks from customers and may not collect on them, those amounts might
be deducted, along with any fees you were charged from your bank. Be sure to keep the returned check, the letter from your bank and your bank statement to show the fee you we are
charged.
9- Postage- All postage costs paid by you or shipping fees might
be claimed. Keep receipts for all shipping supplies, and postage.
10- Computers- If you purchase a new computer for business use, the cost of the computer might
be claimed. You can also claim depreciation for 3 years after the computer was purchased.
This article could be
republished with the resources box included and links must be hyperlinked.
Tara Grant, owner of http://www.awomansresource.com and http://www.designbytara.com. Tara is a warm-hearted entrepreneur, mother of 2 small children and an avid networker in the wahm and parenting communities!
info@designbytara.com
