Home Business and Self Employment Taxes

Getting It Right At Tax Time!

On this page, you will discover a few good reasons why owning your own home based business can definitely help out around tax time. Working from home allows you to a few more deductions than you would normally have!

Being able to write off some of the things you normally do because they are now "business related" is a good feeling! Although this page will help you with some of the basics, make sure you get it right!

When dealing with self employment taxes, home business deductions and all tax related issues, remember to consult with your Tax Accountant. The following are only suggestions.

“The nation should have a tax system that looks like someone designed it on purpose." - William Simon

10 Deductions!

1. Advertising
2. Car Expenses (when related to business)
3. Legal and Professional Services
4. Office Expenses
5. Business Supplies and Equipment
6. Business Related Travel
7. Business Meals
8. Repairs & Maintenance
9. Education Expenses
10. Utilities/Telephone

Proving Your Expenses

If you plan on deducting travel, entertainment, gifts, or transportation expenses, you must be able to prove certain elements of the expense. Everything should been in writing and receipts should be kept, dated and the activity recorded. Timely record keeping is more valuable and it is easier to remember your expenses and you will be surprised at how much you actually spent and the time that is involved.

Adequate Evidence

Adequate evidence is documents that show the amount, date, place and essential character of the expense. A canceled check, together with a bill from the payee is considered receipt enough, but a canceled check alone doesn’t prove a business expense. It is always better to have more than less when it comes to record keeping.

Record Keeping

You can keep great records on your computer with a simple Excel spread sheet or you can buy a bookkeeping journal at your local Office Supple store. Remember to keep your receipt…. It is a tax deductible Business Expense. Get yourself a folder or envelope to place your receipts in. Your Accountant will be so impressed when you come in with your records all neat and in order, in print, than if you were to place that ever elusive “shoe box” of unorganized receipts down on their desk. Trust me I know from both sides of the desk.

Summary

Remember there are people out there that would love to share the information you need (accountants)! Remember to keep great records, and you can always go to "IRS" for more information!

OPTIONAL LINKS...

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