Anytime you take up a new venture like a home business you're like super excited, right? You have all of these hopes and goals connected to it that it can be easy to lose sight of the obligations which go along with that new business. While it can be truly fun and fulfilling, there are several things that are involved with it that have to be taken seriously. There's a myrad of expenses associated with running a home business, but the good news is, many of them are tax-deductible. This article highlights several things you get to write off when April 15th rolls around.
For starters i want to just reiterate, when you've got a home based business, it's essential to assign a separate area used only for business purposes. If ever you get audited by the IRS, you'll need to demonstrate that you have this space laid out for your company affairs. That being said, when you have to purchase office supplies for your business, you will be qualified to write these items off . It may not be sensible to write off every single marker, pen or paper clip, but items like fax machines and copiers and business software should definitely be included. The bottom line is to only write off things that are used solely for business purposes.
You will discover magazines out there created for the sole purpose of coaching you concerning your trade. In order to be successful in your business, you may need to read a few if you wish to keep up with what is going on in your industry. While the Internet has a lot of information, it would not hurt you to check out a few of these trade magazines. If the magazines you purchased satisfy a genuine need for you to run your business efficiently, then guess what? These can be written off as well.
Your Telephone Bill
When you're in any sort of business you are well aware of how important your phone is. Without it, your business will never get off the ground. Although you cannot write off your entire bill from your taxes, you can write off your service if it is a dedicated business line. When you have added a second phone line to your account to be used for business only, that is tax deductible.
The online market place
Could you ever imagine a time where people actually performed business without the world wide net? Thank goodness for technology! The Internet is another expenditure that can be written off if you use it for business alone. Now, if you spend hours and hours shopping on the web and only 60 minutes doing work on it, then please don't attempt to deduct that. If on the other hand, you have a notebook that you use for business reasons (including Facebook marketing), and not for any personal reasons, it's perfectly ok to add your online useage as a business expense.
Shipping and delivery Fees
If you sell things as part of your business, you are eligible to withhold any money that you use in order to ship your items to people. Having said that, if you just use shipping services every now and then while, it won't make much of a difference, but if you use it a lot, that can save you a ton of money. Keep all of the receipts you give from making shipments and any other related cost you may incur during this process.
Lots of people make the mistake of failing to remember to deduct mileage when they file their tax returns. If you use your car for anything that relates to your business, for instance, dinner meetings, product deliveries, and even some leisurely events as long as your business is somewhere in the topic of your discussion, you can deduct it.
What is important to remember is to always record everything that you do that is related to your business. You must keep appropriate records in case there are any questions later on.
You'd be amazed at just how many things you can actually deduct from your tax returns that can save you a ton of money. But it's also true that keeping good records isn't always an easy task. Lately there have been a few really good tax software packages pop up that you can purchase in order to help you keep track of your tax related paperwork. One neat program that I recommend is Deductr, it not only provides a great monitoring system but also educates you on the latest tax variations.
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