You may already know how wonderful it can be to work from home, but do you realize how many home based business tax advantages exist?
Here in the United States, many people operate home based businesses just to take advantage of the numerous tax deductions.
Claiming the use of your home in your business can give you some hefty deductions on your tax return. As with anything tax-related, you must meet certain requirements determined by the Internal Revenue Service. However, if you use one room or part of a room specifically for your business, you can receive a significant home based business tax deduction. This can include portions of your utility bills specifically related to that area of your house as well as any relevant home improvements.
Your phone and other office services can also provide you with a substantial home based business tax deduction. If you maintain a separate fixed phone line or cell phone specifically for your business, then all costs related to those phone lines can be tax deductible. However, if you use equipment or services in both personal and business environments, it is more difficult to establish a tax deduction. It’s not impossible, but you must meet some fairly strict requirements and maintain good records.
Using your car in your business gives you the potential for another good home based business tax deduction. Of course, you must keep excellent records but you can deduct mileage and car-related expenses that you incur while conducting your business. With any type of business, other incidental costs come up. You can also take deductions for purchases of items such as office supplies, postage, advertising materials and expenses. You can potentially deduct even more by hiring your children or spouse to work as employees for you. This enables you to deduct health insurance premiums and other typical employee-related expenses.
In order to find out about the many home based business tax deductions available to you, consult an experienced tax advisor. With proper advice and good record-keeping, your home based business can become even more successful.
Lower Your Taxes – BIG TIME! 2023-2024: Small Business Wealth Building and Tax Reduction Secrets from an IRS Insider
With 200,000+ total copies sold, Lower Your Taxes – BIG TIME! has helped hundreds of thousands of taxpayers save money for 20 years. Now refreshed for 2023-2024, this go-to guide is more topical than ever and includes all the current information you need to know about the latest changes in tax code. The ninth edition of Lower Your Taxes – BIG TIME! shows you how to save thousands of dollars―legally and ethically!―during tax time.
Here is the business I recommend. It’s a Savings Club with an all digital product that can save money for anyone. Exclusive to our fastest growing team is a complete marketing system at no cost to you.