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Home Based Business Tax Deductions

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    Home Based Business Tax Deductions

    By Tara Grant

    Running a home based business reaps many wonderful tax deductions that other businesses some times may not claim. Unfortunately to many small business owners end up paying the government taxes every year because they are unaware or several small business deductions that are available.

    Most of the time any expenses that are related to your business can be added as a deduction on your taxes. If you do not pay taxes through out the year, deductions can help you from paying a large amount of taxes each year and can also adjust earned income. Try to avoid paying large amounts of taxes or owning any money by keeping track of simple things!

    Each business is a bit different so be sure to mention these ideas to your tax advisor or accountant to see if your business can qualify for these deductions.

    1- If you join any business or purchase into any franchise, the expenses such as kits, or franchise fees may be claimed as a deductions.

    2- Business Supplies. Be sure to save all receipts for any supplies you purchase for your business use. Computer paper, business cards, pens, catalogs, or any items you purchase and use for your business.

    3- Advertising- Most advertising can be claimed on your taxes. Keep all receipts for any newspaper adís you may run, or any advertising you do online. Advertising is a business expense and in most cases can be written off.

    4- Items Given Away- Keep a list of any items you may give away, and the costs of these items. Most freebies may also be written off.

    5- Phone bills and internet access- If you have a phone line for business use or have the internet in your home or office for business use, save all receipts for each bill paid. These items are business expenses and may also be written off.

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    6- An in home office- If you have an office in your home, make sure to let your tax advisor know. Using a room in your home as an office can also be added on taxes.

    7- Long distance calls- If you make any long distance calls that are related to your business, make sure you keep all phone bills showing the calls and the amounts charged. If these calls are related to your work, the cost of the calls may also be written off in most cases.

    8- Returned Checks and Bank Fees. If you incur and bounced checks from customers and can not collect on them, those amounts may be deducted, along with any fees you were charged from your bank. Be sure to keep the returned check, the letter from your bank and your bank statement to show the fee you were charged.

    9- Postage- All postage costs paid by you or shipping fees may be claimed. Keep receipts for all shipping supplies, and postage.

    10- Computers- If you purchase a new computer for business use, the cost of the computer may be claimed. You may also claim depreciation for 3 years after the computer was purchased.

    Tara Grant is the owner of and Tara is a warm-hearted entrepreneur, mother of 2 small children and an avid networker in the wahm and parenting communities!

    Learning a home based business is very easy. To get started with it is equally interesting and easy. These days so many of them opt to start a home based business. The numbers are just increasing and the reason behind this is the large number and variety of home based businesses that are available. Some of them may involve selling information or sell additional health benefits while others may involve selling products. These are just a few to name.

    Once you determine that you want to work at home the next question is what has to be done next. The next step is to take some time to brainstorm what you like to do that will give you benefits and work out once that is turned to a home based business. Make sure you choose the right home based business. It is very important for you to be smart while choosing the type of business. Once you have a passion towards the business you are working on, then, it is very natural that you will put all your efforts to come up with great results.
    Last edited by sweeps; 04-12-2008, 05:24 AM. Reason: Forum posting rules


      There are countless examples of people all over the world making money using nothing but their computer with Internet connection.You can know the multiple streams to generate income.If you are willing to master a few skills there are many different ways to make Money on the Internet.



        My home based businesses, when combined make almost as much as my husband does after taxes. It's true you really can make an okay income at home, but it's also true home based business require a lot of work with out a guarantee of payment.

        My opinion is this, make sure someone has a regular working wage in the house before starting a home based business that requires start up fees. If you have no other choice, then go ahead.
        It takes 6 months to build a "hot" business and longer for a business that is in less demand. This is where you build recognition. It took me 8 months to build my psychic line, I am still building my farm produce business, and my selling business.
        Building a business is all about 3 things, customer service, quality product, reliability. Customer service picks up the slack for any downfalls in the two following areas.


          Thank you for your tips..


            best home based business

            Over the course of the past decade there has been a surge in the number of people who are starting and running home based business enterprises the world over. If you have made the decision to start and run a home based business, you no doubt will want to be the proud owner of the best home based business possible.


              Home Based Business

              Great to know about you. Actually, i am aware of all these taxes but after seeing stuff , I was very happy as there are tax deductions in home based business.


                in home based business tax is not a matter. if you want then can earn more at home.

                Business Opportunities


                  Office furniture

                  You can take a deduction for the office furniture you buy for your home office too. You can either take 100% of the cost in the year you buy it or depreciate it over the next seven years.


                    It's interesting though how quickly the IRS goes after people with home based businesses. Theyre usually the first to get audited.