![]() |
|
![]() |
|
![]() |
|
![]() |
Running a home based business reaps many wonderful tax deductions that other businesses some times may not claim. Unfortunately to many small business owners end up paying the government taxes every year because they are unaware or several small business deductions that are available.
Most of the time any expenses that are related to your business can be added as a deduction on your taxes. If you do not pay taxes through out the year, deductions can help you from paying a large amount of taxes each year and can also adjust earned income. Try to avoid paying large amounts of taxes or owning any money by keeping track of simple things!
Each business is a bit different so be sure to mention these ideas to your tax advisor or accountant to see if your business can qualify for these deductions.
1- If you join any business or purchase into any franchise, the expenses such as kits, or franchise fees may be claimed as a deductions.
2- Business Supplies. Be sure to save all receipts for any supplies you purchase for your business use. Computer paper, business cards, pens, catalogs, or any items you purchase and use for your business.
3- Advertising- Most advertising can be claimed on your taxes. Keep all receipts for any newspaper ad's you may run, or any advertising you do online. Advertising is a business expense and in most cases can 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 may also be written off.
5- Phone bills and internet access- If you have a phone line for business use or have the internet in your home or office for business use, 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, make sure to let your tax advisor know. Using a room in your home as an office can also be added on taxes.
7- Long distance calls- If you make any long distance calls that are related to your business, make 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 can not collect on them, those amounts may 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 were charged.
9- Postage- All postage costs paid by you or shipping fees may 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 may be claimed. You may also claim depreciation for 3 years after the computer was purchased.
About The Author
This article may 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!
As a small business owner, it's wise to familiarize yourself... Read More
Do you realize that some tax forms ask you to... Read More
Taxpayers have two easy and convenient options for getting copies... Read More
The knock on the door from a Tax Inspector is... Read More
It may not be high on the list of wedding... Read More
Six Urban Myths ? Taxation"I am proud to be paying... Read More
If you are a Small Business Owner or Self-Employed Person,... Read More
Often people fall on hard times and stop paying on... Read More
Beware of advertisements that claim to settle tax debts for... Read More
Yes, the tax season is upon with the first filing... Read More
Misconceptions, misinterpretations and just plain "untruths" are floating about income... Read More
Own residential rental properties? This article discusses how income from... Read More
Does your incorporated business pay alternative minimum tax ["AMT]? If... Read More
In the latest Star Wars episode, the evil empire executes... Read More
One can never underestimate the enthusiasm that politicians have for... Read More
If your identity is stolen, your finances can quickly become... Read More
Strategic planning throughout the year results in a minimal tax... Read More
Tilting the Tax Laws in Your Favor.In order to accelerate... Read More
While there are many equally valid reasons to incorporate, saving... Read More
"What we've got here is a failure to communicate." ... Read More
NOTE: This is the first in a series of 5... Read More
In trying to comply with tax laws for your e-business,... Read More
"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More
If you have employees, you are responsible for paying a... Read More
For many business owners the answer to this quandary is... Read More
Import duties continue to be significant elements in the cost... Read More
Haven't done your taxes yet? No problem. Now there is... Read More
It's a major fear for most Americans: A notice from... Read More
One of the most important, but least understood or appreciated... Read More
With the massive losses caused by Katrina, the economy of... Read More
On June 3, 2005, the IRS released guidance on charitable... Read More
In the largest criminal tax case ever filed, KMPG has... Read More
In elementary school, kids come up with creative excuses why... Read More
How about a Tax Tip?As we all know Taxes are... Read More
Assume a buyer in Pakistan downloads software from the Internet... Read More
In the rush to get tax returns prepared and filed... Read More
Just image, you are a small manufacturing company, business has... Read More
Donating your used car to charity is a win-win situation;... Read More
Are you in the middle of a disagreement with the... Read More
As a small business owner, it's wise to familiarize yourself... Read More
If your identity is stolen, your finances can quickly become... Read More
The means and types of businesses have transformed with advent... Read More
Estate taxes. It's not enough to simply know they exist,... Read More
Have you been thinking about incorporating your small business or... Read More
Ever wish that, as a business owner, you knew exactly... Read More
In a past article I relayed the plight of the... Read More
The Internal Revenue Service is reporting that the difference between... Read More
Following is a reproduction of the IRS's rules and requirements... Read More
Recently, I stumbled across a concept that could change your... Read More
If your like many, you don't always understand what people... Read More
Tax Tax |