It is definitely never too early to think of tax time. As a matter of fact, NOW is a great time to be getting things together for the Jan-March tax crunch. It is also a great time to be thinking about ways to get ready and be organized for your taxes next year.
Desiree Richardson of Rich and Rich Entrepreneurs has written a wonderfully informative article on the ways to maximize those deductions and take advantage of those benefits due to you as a work at home entrepreneur. Definitely worth a read!
Tax Deduction Strategies For A Home Based Business
By Desiree Richardson
Congress has approved a number of tax breaks as incentives for small businesses. Owning a home-based business is the best way to take advantage of these tax breaks.
As a small business owner you have more tax breaks available to you than anyone else. Unfortunately, these tax breaks go unused because most small business owners don't know about them.Any home-based business, even part-time, that is not a hobby, and is in pursuit of a profit, can qualify for huge tax breaks - it's US Government law.You have a total of 3 years to turn a profit on your business before it will be considered a hobby and not longer eligible for a business tax deduction.
By owning a home-based business and taking advantage of the tax breaks available to you, you can keep more of your income, even if your business isn't producing a profit!
I am the sole proprietor of Rich and Rich Home Opportunities and also have an EIN (Tax ID #) for that business.I filed a business deduction for the business in 2009 even though I made about $600 total.Rich and Rich Home Opportunities is a company that focuses on bring quality home based business to the those seeking a home based business.I always pay for my advertising with my credit card or through paypal which is attached to my bank account, and makes it easy to create the receipts that need to be provided when you apply for your business tax deduction.
These are the tax deductions that I took in 2009 with all receipts!
If you have signage for you business on your car, this is considered advertising and the cost of gas and maintenance can be deducted.Keep the reciept when you purchase your signage and take pictures of your car and keep in your records.
Claim a home office deduction for your offices at home which I am sure has a fax,scanner,computer, record keeping, and educational materials that help you to run your business.
Your capital costs of a computer, it's software and even Internet access can be deductible when used is a home based business .
I payed via paypal for advertising on networks such as DirectSalesMoms, Traffic Exchanges, ineedhits, autoresponders, and offline print materials.My advertising was the bulk of my deductions.
I also deducted business start up costs because I would have to be a part of a business in order to promote it as a Rich and Rich Home Opportunities business.My company is classified as a b2b.
You don't need a company to tax a business deduction.If you are a network marketer or direct sales associate, then you are eligible for a business deduction.There is cap on the deductions based on the type of deductions.For example,I received $9,000 but that was my cap.
The key to all of the tax incentives and more is to treat your business as a business, not as a hobby. The intent of your business is to make a profit. This does not mean that you have to make a profit, but a reasonable effort has to be made. Work your business. Profit it what we all want! Keep good records of your business activities with a good log book and you will have no trouble with the intent.Working in a home based network marketing company has endless advantages with unlimited income, more free time to do the things that you want and helping other people.
If you hadn't noticed, the blog has been on a bit of a hiatus... We were in the middle of a military move from Cheyenne, WY (during a snowstorm to boot!) to Shreveport, Louisiana. We have made it here safe and sound an now settled in this wonderful new community.
And now - the holidays are smack dab upon us - can you believe it is already December?? Not many shopping days till Christmas left! I know what I do when I am in a time crunch like that. I buy gift cards. Not my favorite thing to give, but I have found a great way to make them EXTRA special: The Foof Queens! :)
I love giving gifts that make the recipient say, "WOW!" - and The Foof Queens really show you how to give such a gift. Just take a look at the gallery - I would love to receive any gift that looks like that!
Be sure to check the site out for more wonderful ideas on this beautiful way to package gifts, and check out these wonderfully unique ways to showcase party giveaways, promotional materials, catalogs, samples, and more for your business.
I love how Foof Queens gives your gifts and promo items that little something extra that stands out. And right now they have a 30% off sale going on right now. I know I am foofing up all kinds of stuff during the holidays!
We use third-party advertising companies to serve ads when you visit our website. These companies may use information (not including your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here.