Home Based Business Tax Deductions

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!

[email protected]

In The News:


Stuff.co.nz

Greed, not taxes, will ruin this country | Stuff.co.nz
Stuff.co.nz
When the privileged belittle those who are struggling and tell them to work harder, it shows how ignorant they are. National's campaign strategy, which is to ...

and more »

Concord Monitor

President aims to achieve balancing act on taxes
Concord Monitor
In this Sept. 22, 2017, photo President Donald Trump speaks at a campaign rally in Huntsville, Ala. Trump says he wants to lure Democratic lawmakers to sign on to a Republican-crafted tax overhaul plan. But negotiators must grapple with the reality ...
Trump aims to achieve congressional balancing act on taxesMinneapolis Star Tribune
Trump, Republicans to showcase tax cut for businessesReuters
GOP eyes corporate tax rate of 20 percent, retreating from Trump's lofty goalWashington Post
CNBC -MSN.com
all 76 news articles »

STLtoday.com

Kirkwood police warn residents of scam involving delinquent taxes
STLtoday.com
The Kirkwood Police Department is warning that someone is scamming residents. The police phone number will show up on caller ID. The person on the line identifies himself or herself as an IRS agent and says the resident owes delinquent taxes from a ...


Newnan Times-Herald

County cracking down on unpaid taxes
Newnan Times-Herald
After the first year, the tax deed owner can take action to “foreclose on the right to redeem.” That requires notice to the property owner and a legal advertisement in The Newnan Times-Herald. Once the right to redeem has been foreclosed upon, the tax ...

and more »

NJ.com

Local leaders warn: Your property taxes will rise unless this happens
NJ.com
TRENTON -- New Jersey's 2 percent cap on police and firefighter arbitration awards must be renewed, or else taxpayers will see their services cut and property taxes rise, local government leaders said Friday. The cap on awards police and fire unions ...


Springfield News-Leader

Higgins, Reed to meet with Trump on taxes
Buffalo News
WASHINGTON – Two of Western New York's House members will head to the White House Tuesday to talk about tax reform with President Trump. Rep. Brian Higgins and Rep. Tom Reed are among several members of the tax-writing House Ways and ...
The tax reform we'd like to seeSpringfield News-Leader
Six ways Trump could hit the rich with tax planThe Hill
Presidential Tax Relief and Reform: Vital for Economic Growth, American JobsCourier-Times (subscription)
Reason (blog)
all 23 news articles »

The Korea Herald

Korea slaps more than W1.3tr in taxes on offshore tax evaders
The Korea Herald
The National Tax Service has collected only 1.067 trillion won in taxes as some people filed complaints with the country's Tax Tribunal against its decisions to slap taxes on offshore tax evaders, said Park Myung-jae, a lawmaker of the Liberty Korea ...

and more »

The Real Deal Magazine

How UK landlords and wealthy home buyers are avoiding property taxes
The Real Deal Magazine
Lawyers say they've found a technical loophole in the UK stamp duty tax laws: if buyers package their new home with a forested plot of land — even if the two lots are in different parts of the country — they could avoid “tens of thousands of pounds ...

and more »

The Gazette: Eastern Iowa Breaking News and Headlines

GOP priorities of lowering taxes, increasing school choice at risk in Iowa
The Gazette: Eastern Iowa Breaking News and Headlines
Yet more difficulties lurk ahead that are likely to cause lawmakers to rethink how and whether they approach priorities for them like reducing taxes and increasing ways for parents to choose private or religious schools with public help. When lawmakers ...

and more »

All taxes trickle down to consumers
The Decatur Daily
The people who developed the Fair Tax proposal discovered that, on average, the cost of goods and services carry a hidden federal tax burden of approximately 22 percent. And this was before Barack Obama; it has likely risen. But increasing costs are ...

Google News

Slash Tax when Buying a Business

When buying a business, how the "purchase price" is made... Read More

The Tax Man Cometh... To Search

You're at your office, or home, and the doorbell rings... Read More

What to Do If You Can?t Pay Your Taxes

The end of tax filing extensions is quickly approaching. What... Read More

1031 Exchange Rules and Requirements

Following is a reproduction of the IRS's rules and requirements... Read More

Some Folks Pay A Lot Less Tax Than Others On Very Same Income?Did You Pay Too Much Tax In 2004?

Someone once remarked, "Next to being shot at and missed,... Read More

Small Business Tax Deduction - Write-Off Bad Debts

Practically every small business has receivables that it cannot obtain... Read More

Business Tax Deductions

As we enter mid-March, taxpayers begin to become very interested... Read More

Taxing Overseas Firms for SOX Compliance

The Sarbanes-Oxley Act, also called the Public Company Accounting Reform... Read More

Small Business Tax Issues for Self-Employed Individuals

The United States is a nation of entrepreneurs. There are... Read More

Keeping Your Own Money ? NOT Handing It Over To The Taxman

Most people trying to make a crust online (or offline... Read More

E-commerce Taxation

The means and types of businesses have transformed with advent... Read More

Tax Trap #3 -- IRS Penalties, Interest and Love Letters

As a small business owner or self-employed person, one of... Read More

Tax Audits: What Signs Make You More Likely to be Audited by the IRS?

It's a major fear for most Americans: A notice from... Read More

IRS Offer-in-Compromise, Hype or Hope?

"Settle for Pennies on the Dollar! IRS debts settled for... Read More

10 Thoughts on Tax Offer in Compromise

Beware of advertisements that claim to settle tax debts for... Read More

Access to E-records by Taxing Authorities: A Case for Pakistan (Part I)

Background issues of access to recordsTo assess the records at... Read More

How to Reduce the Estate Tax Using the A-B Revocable Living Trust

In a past article I relayed the plight of the... Read More

How to Donate Your Car to Charity and Get Tax Deduction

Donating your used car to charity is a win-win situation;... Read More

Tax Tips to Save Money on Taxes - Get the Corporate Kick and Save Loads of Money

Why a Corporation Helps Save You TaxesThe Tax Rates (Notice... Read More

Six Urban Myths About Taxation

Six Urban Myths ? Taxation"I am proud to be paying... Read More

Understanding Marketing Tax Deductions

Marketing is a necessary expense in running practically any business... Read More

2005 Ford Escape Hybrid Certified For Clean-Fuel Deduction

If you are environmentally conscious and purchase a 2005 Ford... Read More

Electronic Commerce Taxation and Pakistan

Assume a buyer in Pakistan downloads software from the Internet... Read More

The Implications of Income Tax Charge on Estate Planning

OverviewIn the Pre-Budget Report of December 2003 the Chancellor Gordon... Read More

Fiscal Deity: Tax Consultant

Strategic planning throughout the year results in a minimal tax... Read More