Hello home based business owners! Today’s blog is about saving money with home business tax write-offs. If you are running your own direct sales business or online store out of your home, you can take advantage of several tax breaks.
A percentage of your rent or mortgage and utilities can be deducted. If you use your computer exclusively for running your business, you may be able to write off the entire purchase price. Don’t forget to include the monthly fee to your internet service provider (I put this expense under the utilities category mentioned previously.) Postage can be written off you are are mailing samples, in fact, samples of product can be written off as well.
Last summer I set up a booth at the local farmers market with my products, I deducted the cost of the booth, the ice I bought to keep my products cold, the poster board and other materials I used to make my advertising, the brochures I bought from the company to give away, the table I purchased to put my supplies on, you get the pictures. Be creative you accountant will let you know if you have gone to far.
Gasoline and auto maintenance expenses can take a large chunk of your income, especially as gas prices continue to rise. Don’t forget to expense the business portion of your transportation costs. Going to your parents house to visit, give someone in your hometown a demonstration of your products and write part of your trip off.
You can’t write off 100 percent of business meals eaten in restaurants, but you may be able to expense 50 percent. The amount may seem too little to bother with, or on the other hand, it may surprise you. The key to getting the most tax savings possible is keeping good records and adding up all the little savings.
Here’s wishing all home business owners a smaller tax bill this year!
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