Your Instant Pay Raise - Tax Advantages of a Home Based Business
The minute you start a home based business and begin building it, you'll begin enjoying the tax benefits that go along with it - and give yourself and instant pay raise if you are also currently employed - as a result! You may have access to a number of tax write-offs you could not previously deduct.
Some of these, may be wholly or partially deductible; your home, car, travel, meals, and entertainment,to name a few.
If your business is primarily or even partially an internet based one then you can deduct your internet connection fees, hosting fees for your website, software and eBook purchases, memberships, subscriptions just to name a few.
In addition to that, any advertising expenses such as ezine ad expenses, buying leads, training you attend are also tax deductions you can take.
Most country tax laws allow you to deduct business expenses whether you make a profit or not, as long as you legitimately try to make a profit.
Paying for subscriptions, buying leads, and advertising all help prove that you are trying to build your business this is a key factor used by the IRS to determine deductibility of expenses.
You can hire family members and pay them on a regular basis, just like you would any other employee.
Deduct travel expenses.
You may be able to convert what would normally be vacation expenses into deductible business expenses, just by planning a bit ahead of time.
You may be able to deduct mileage for prospecting.
Whether it is handing out prospecting literature including brochures, audio tapes, CDs, newspapers, or networking for new contacts; anytime you prospect for your home-based business, the mileage is potentially deductible.
Keep a supply of prospecting materials in your car and you could possibly turn any errand into a prospecting trip! Again, the key is to keep detailed records.
You could potentially get a much greater write-off by leasing your vehicle, not buying it.
The write-off on a vehicle you own is limited to a certain depreciation amount, while the write-off for a leased vehicle is not limited to any particular dollar amount.
You could possibly turn automotive related expenses into deductions and actually write off mileage to and from your current job if you plan ahead.
These expenses are those you already spend money on, so even if it takes awhile for your business to make money, you can increase your take home pay simply by legitimately paying fewer taxes! Consult your tax advisor, who can help you adjust your withholdings with your employer.
Your employer will then take fewer taxes out of your paycheck and you'll have more money each month.
It's like an immediate pay raise! Think about it with all of the tax write-offs, you could potentially make less money than you did working for someone else and still come out ahead after taxes! A home-based business can be one of the best ways to save money and make money at the same time giving you time for the important things in life that bring you happiness.
· Stay at home with your children · Pay off bills · Buy a new car · Buy a new home If you haven't already started a home-based business now is the time to do so and enjoy the extra savings from tax deductions.