Home Business Tax Advantages
There are all sorts of different reasons that someone would want to own their own business. For most it’s to increase their income, some it’s for the great products or services and for others, it’s for a different reason. There are some sub-contractor jobs such as real estate, insurance or any job that requires you to claim your own taxes that bring about a nice little bill around April 15th. For most, this is a shock. Question is, what options do we have to defer some of this?
Home business tax advantages can help defer quite a bit of this OR if you have a typical job, this could be a huge advantage for you. Please note: I am not an accountant or pretend to be. This information is from the Home Business Tax Savings Inc, Ron Mueller 2009. According to this book, you need to have an intent to make a profit.
Home business owners get to write off lots and lots of expenses, from rent to furniture to mortgage to phone bills, etc… We as business owners have a three step tax system.
Step 1: Earn revenue from selling good or services.
Step 2: Spend what’s necessary to keep your business going, on whatever’s necessary for operating expenses.
Step 3: Then you pay the taxes on what is left. This step right here is what put my total family’s income a complete tax bracket. That was huge and it came right at the time that we needed that return.
I took the time to compile a list of Home Business Tax Deductions according to Home Business Tax Savings Inc, Ron Mueller 2009. At the bottom, I address the “Audit” concern.
- Home Business Tax Deductions
Mortgage, interest or rent
Gas, electric, water and sewer
Computers, copiers, fax machines and phones
Paper, pens and postage
Bank fees and business accounts
Desks, sofas, coffee tables and other furniture
Credit card annual fees (for business-only cards)
Painting, wallpaper, carpeting and other repairs/maintenance
Legal and professional services
Phone bills and cell phones
Magazines and books for business education
Online business education
Plane fares, hotel costs, meals and rental cars
Taxes and licenses
Special work clothing
Lunches, dinners, ball games and theater tickets
Security alarms and hidden camera
Health, life, dental, vision, disability and unemployment insurance
Company cars (and even boats)
Holiday cards, gifts and postage
- Internet Inclusions
Internet access fees
Web hosting fees
Cable, DSL or Broadband internet services
Computer extended-warranty costs
Data backup services
Ink and toner cartridges for printers
Software used for business
Firewall, Spyware and Antivirus services
Conference call services
As I mentioned above, I am not an accountant. I received all this information from a tax professional.
The concern that most people have is an audit. I get that, it sounds like a scary ordeal. I would highly recommend hiring an accountant. Do your research on them to be sure they are reputable. It’s a good idea to get a referral from an associate in your field.
It may be a few hundred dollars for their services…Isn’t it worth it to have peace of mind and to possibly receive hundreds in return per month? Especially when you realize what you will be saving.
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Hope you got value, feel free to leave me a comment and your thoughts below.
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