Tax Benefits of a Home Based Business

Tax Benefits of a Home Based Business
If you have a home business then you need to make sure you
take advantage of all the tax breaks that are available to
you. Many home businesses are unaware of all the tax breaks
that are available to them and do not claim them on their
yearly tax return. This is unfortunate because small home
businesses more than anyone need all the tax help they can
get. The following tax benefits are just a few suggestions
every home business owner should consider claiming this tax
season.

Tip #1 Business Space

You can claim a portion of your utilities, insurance,
mortgage, and more, for your business space. As long as
there is a percentage of your home that is used solely for
business purposes then this consists of your "office." To
find out how much you can claim of the above expenses you
need to do a little math. Determine the square footage of
your home and then the square footage of your "office."
Once you know the percentage then take that amount from
your yearly mortgage payments, insurance payments,
utilities, repair, and the like. An example would be that
if you used 15% of your home as office space then 15% of
the bills associated with the home could be claimed as an
exemption on your tax return. This can result in some major
savings when tax time rolls around so be sure you
investigate what expenses relate to your business and can
be exempted.

Tip#2 Transportation Expenses

You have a car, you buy gas, and you pay for car expenses.
This can add up over a year's time so you want to make sure
you claim all uses of the vehicle for home business
purposes. This could include trips to the post office or to
buy home business supplies. It might be to pick up lunch
for clients or driving to meet potential clients. As long
as you keep a record of where you drive, how many miles it
is, and who you are meeting with then you can claim the
transportation expenses and be covered in case you are
audited.

Tip #3 Furniture

Believe it or not but you can deduct furniture as long as
it is used for business purposes. That means your desk,
tables, chairs, even a sofa used in the office space may
qualify for a deduction. Keep records of how the furniture
is used and be sure to always keep receipts for the price
of the furniture. When you claim deductions, even if they
are legal ones, you want to make sure you can cover
yourself if you are ever audited in the future.

There are actually many other tax benefits a home business
can take as long as they qualify for them. Some of these
include telephone charges, social security, computer
equipment, restaurants and hotels, and even child labor!
There are ways to reduce your tax liability each year as
long as you are savvy enough to figure them out. Sure, you
can always hire an accountant, but then you would have to
pay him. So, figure out where you stand and how you can
help your home business save money on taxes each year.

----------------------------------------------------
TO learn more about tax benefits and any home based
business opportunity, please please visit our website at
http://www.homebasedbusinesst.com to learn more about our
work from home opportunities.