Tax Time - Examples of Legal Deductions
Home business entrepreneurs are approaching tax time just like everybody else, so I wanted to remind everyone of just a few of the many, many, legal deductions we are entitled to.
This article is not intended to replace a competent tax expert’s advice nor is it legal advice. This post’s purpose is two-fold.
First it is meant to alert people who have not yet started a home business that they are missing out on something HUGE (ie – LOTS more money in their pocket).
Second: To inspire people who do have a business to educate themselves completely on wide range of deductions available.
Some of the deductions which may be applicable to you are:
• General Overhead: your home office, phone service, cell phone, utilities, office supplies, computers & programs, internet service, fax & printer, insurance, maintenance, office cleaning, landscaping, etc.
• Training/Education: Seminars, business conferences, books, fees for organizations (BNI, Chamber Commerce, etc), trade magazines, etc.
• Marketing: Tradeshows, any type of advertising (classifieds, internet, flyers, car signs, radio, TV, etc), business cards, mailing lists, market research costs, etc.
• Automobile: Vehicle purchase/leasing, mileage, tolls, parking fees, car washes, insurance, repairs, registration & plates, etc.
• Travel: Car rental, cabs, air fare, tolls, mileage, travel memberships, etc.
• Administration Costs: Postage, P.O Box, stationary, office supplies, copies, printing, etc.
• Gifts & Donations to Charities: Chartable donations and gifts to clients, prospects, vendors, etc.
Keeping viable records is essential (it makes you audit-proof) -and only takes about two minutes daily.
This list is far from complete. Do NOT depend on your tax preparer to know of (or want to use) all the deductions you are entitled to. This needs to be YOUR responsibility because it’s YOUR money, and nobody will take care of it like you will - period.
There are several excellent books available on legal tax deductions for home based business available at places like Amazon.
John T. Kelly ~ The HomeBusiness Evangelist
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