Do you know the tax advantages that running a home based business can give you? Do you know that your subscription to your internet provider is a tax deduction? How about your membership to your online courses you have been taking all year?
Now beside having all of these benefits:
- Working when and where you want
- More time with your family & friends
- No commuting to and from your JOB
- Just plain old Time Freedom
You also have the opportunity to save money when you do your taxes!
Here is a list of some of the things that are deductible:
- Your office
- Your car
- Internet service
- Phone service
- Office supplies
- Computer, and all supplies
- Everything that you pay for online-Auto responders, hosting, advertising
- The list goes on & on
Lets talk about a few of these that I have mentioned. Claiming your office as a deduction is allowed as long as you use as specific room or at least a part of it to work your home based business. By setting it up this way you are now allowed to deduct your rent or mortgage payments, taxes, utility bills, house insurance and yes even the furniture you have to buy or the improvements that you make to the room.
Let me explain this here for you, lets say you have a 5 room house and you use 1 of the rooms exclusively for your home based business. You are now allowed to take 1/5 of the expenses each month and write them off.
Now about your car, you will use this for business, Right? Going to meetings, to have lunch with your prospects, going to the post office to get postage, Oh and to the bank making those HUGE deposits. But be careful with this one and make sure you track your mileage and all car expenses. This is a great deduction for you.
VERY IMPORTANT – Save ALL of your receipts, get yourself a box and put them all in there. It’s a good idea to get yourself a notebook and write each receipt down, set a date each week to do this. You could also do it on your computer but make sure that you back everything up, you never know when something could happen to your computer and it would all be lost.
If you are making any kind of money online then this is a great way for you to off set your income by taking advantage of all of these deductions. You actually don’t even need to be making any money yet to get deductions, you can use the “carry forward loss”. This is when you are just starting out and not making any money yet. You can use the deductions when you start making money. Or check into the “carry back loss” Make sure to check into both of these this year if you are just starting out.
I am not a tax professional, but have taken these deductions, so be sure to ask your tax accountant about all of this stuff that I have mentioned here. With the advice of your accountant (With your help) and good record keeping your home based business will surely help you get the most money back from Uncle Sam.