A Home Business Can Give You Tremendous Tax Savings

A Home Business Can Give You Tremendous Tax Savings


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Home Page > Business > Home Business > A Home Business Can Give You Tremendous Tax Savings

A Home Business Can Give You Tremendous Tax Savings

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A Home Business Can Give You Tremendous Tax Savings

By: Maryjean Howe

About the Author

Tax saving is one of many things that home business owners can enjoy as a result of their decision to have a business at home.
Maryjean Howe is a professional internet marketer and business coach based out of Oceanside, CA. She works with people to help them start a business and continues to help them use training materials to effectively run a successful business. Maryjean has worked with people from all different backgrounds to help them start a business without any experience. For more information, contact Maryjean.

(ArticlesBase SC #1619630)

Article Source: http://www.articlesbase.com/A Home Business Can Give You Tremendous Tax Savings





One of the main benefits for having a home business is that it allows almost everyone an opportunity to be their own boss without spending a lot of money on setting up a business. The other advantages that are obvious to most home business owners are flexibility of time, reduced running costs, and convenience. However, there is another big advantage about which most home business owners have only a vague idea. They are not aware of the huge potential of home business tax savings that they can get from their business.

Here are some of the tips to make sure that you are not deprived of tremendous home business tax savings

Make sure you qualify: A lot of people may assume that since they work from home they qualify as a home business. However, it is important for you to know the rules that apply to your area about the qualification of a business as a home business. You would not want to be caught off-guard. Make sure that a room in your home is exclusively used for your business only and not for other activities as well. Do this by ensuring that you have a separate work space that can be designated as your home office. If you are not sure about anything, consult a tax professional.
Keep track of all expenditures: It is very common for a home business owner to get engrossed in the day-to-day activities of running a business and lose important bills, receipts and other proof of expenditure that is related to the business. A lot of home businesses end up paying much more tax than they really should because they did not document all the financial records. The best strategy is to file them as soon as you receive them. This will help you maximize your home business tax savings.
Know expenses that qualify for deduction: It is amazing that many business owners who have been running their home office for years have very little idea about what expenses qualify for tax deduction and help in home business tax savings. All expenses that qualify as “Ordinary and necessary” can be deducted from your tax. Ordinary expenses refer to all expenses that a home business similar to yours will incur and there is nothing unusual about it. Necessary expenses refer to any money without which you will not be able to run your home business.

For your convenience, here is a list of expenditures that are usually deductible: 

  Marketing and advertising costs
Accounting and bookkeeping costs
Business transportation expenses
Costs associated with business conferences
Business credit card expenses
Depreciation charged on business furniture, vehicle and equipments
Business training and seminar costs
Computer and other equipment purchase
Furniture costs
Expenses related to home office
Insurance
Interest on business loans
Legal fees
Repairs and maintenance of office equipment
Office stationary and supplies
Internet, and other web related services fees
Postage and mailing expenses
Business telephone expenses
Utilities like electricity
Employee wages

4.  Consult a tax professional: Often home business owners tend to ignore this and decide to go on their own, most of the time, to save costs. However, if you have a friend or a family member who is a tax professional, it is a great opportunity to take advice about how to enhance your home business tax savings. Also, if you have no acquaintances, it will be worth your investment to hire a reliable tax professional who can help you save a lot of money by guiding you on how to increase your home business tax savings.

For more information, go to MaryjeanAHowe.com.

Retrieved from “http://www.articlesbase.com/advertising-articles/a-home-business-can-give-you-tremendous-tax-savings-1619630.html

(ArticlesBase SC #1619630)

Maryjean Howe -
About the Author:

Tax saving is one of many things that home business owners can enjoy as a result of their decision to have a business at home.
Maryjean Howe is a professional internet marketer and business coach based out of Oceanside, CA. She works with people to help them start a business and continues to help them use training materials to effectively run a successful business. Maryjean has worked with people from all different backgrounds to help them start a business without any experience. For more information, contact Maryjean.

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Article Tags:
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Tax saving is one of many things that home business owners can enjoy as a result of their decision to have a business at home.
Maryjean Howe is a professional internet marketer and business coach based out of Oceanside, CA. She works with people to help them start a business and continues to help them use training materials to effectively run a successful business. Maryjean has worked with people from all different backgrounds to help them start a business without any experience. For more information, contact Maryjean.


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