Taxes: Home Based Business Tax Deductions

The majority of articles on the benefits of a home business don’t often talk about the subject of taxes and how you can actually save money if you have knowledge of all the tax benefits offered a home based business. Online or off.

What most people are not aware of is that even a small home business can actually save you hundreds, even thousands of dollars in tax deductions. We all have to and should pay our taxes. But as Ronald Mueller, MBA, PhD says: “It’s how much you keep that counts, not how much you make”.

Small Businesses Create 70% of the U.S. Job Growth

Even a small part-time business can qualify for more tax benefits than any other category of taxpayer. As president George W. Bush said “Small Business is the backbone of the American economy”.

These Are Legitimate Tax Breaks

1. Authorized by the U.S. Congress
2. Publishes in the IRS code
3. Approves by the Federal Tax Court rulings

What Are Some Legal Business Deductions?

1. Business use of your car or truck
2. Cell phones and other electronic devices
3. Business travel with family
4. Portion of your rent or mortgage, repairs, home maintenance
5. Gas, electric, other utilities
6. Meals, entertainment
7. Computers, equipment, furniture
8. Marketing tools, supplies, meetings
9. Have your children or grandchildren work in your business
10. Many other deductions are available

How Do You Qualify For These Tax Deductions?

1. Have a legitimate home business – consulting, child care, direct sales, beauty salon, Internet marketer, MLM

2. Profit – show your intent to make a profit, you do not actually have to make a profit to take these deductions

3. Treat your business as a business, not a hobby. Work on a regular and consistent basis.

4. Document your income, expenses and activity. Brief notes are usually adequate

If you meet these four requirements, you probably qualify for thousands of dollars in tax savings every year.

Get Your Tax Savings Any Time of Year

You can put an extra $300 to $600, maybe more in your take home pay. Just go to your employers payroll office and up-date your W-2 (based on your added tax savings with a home business) to increase your take home pay.

These savings are frequently enough to pay for the start-up cost of your business. To take advantage off all these home business tax benefits consult with a tax expert who is familiar with home based business tax laws.

After 35 years in practice Dr. Enders closed his Chiropractic Clinic to pursue a career in Network Marketing. He soon realized that if your business is not on the Internet, you're not in business. In his search to learn Internet Marketing Dr. Enders discovered Renegade Professional and the principle of attraction marketing.

Dr. Enders is a Renegade Professional Coach www.renegadesuccess.info