Saturday, December 8, 2007

Home Business Houston-Tax Deductions For The Home Business Owner

Home Business Houston-Tax Deductions For The Home Business Owner


Tax time can be one of the most anticipated periods of theyear. After the holidays have become a memory and before the funof summer begins, we must devote several hours of our lives tocompleting this project. This can be especially challenging forthe home based business owner. There are several deductions thatare available for the work from home individual. These ideas canhelp reduce your tax burden.


1) Accountant Costs If you use the services of an accountant, these costs aretotally deductible for a work at home business.


2) Advertising Costs Any amount of money that is spent to advertise an internetbusiness is tax deductible. Business cards, flyers, newspaperads, internet ads, etc.

3) Bank Fees All of the bank costs incurred to run a home business are taxdeductible.


4) Research And Training Materials Any educational materials purchased to increase your expertisefor developing, maintaining and improving a home based businessare a tax deduction. This includes software and E-books.


5) Internet Service Provider Keep a log of the business hours spent online and personal timeon the internet. The business percentage can be taken as a taxdeduction against ISP costs per month.


6) Web Hosting Fees The monthly costs paid to a web host provider for managing aninternet business site are deductible.


7) Long Distance Telephone Costs Keep an accurate account of the amount of money spent for longdistance phone calls that relate to a home business.


8) Office Equipment Your computer, printer, fax machine, answering machine,scanner, furniture, remodeling, etc. are tax deductible whenused for a home based business. Some people choose to depreciatethe cost over several years or take the entire expense at onetime. Your tax situation will determine the decision.


9) Shipping Costs If you ship products, the amount of money spent for boxes,tape, packing peanuts, bubble wrap, etc. is tax deductible. Ifyou use a personal car to transport packages to the post office,keep a log of the distance traveled.


10) Office Supplies Paper, stationery, folders, pens, pencils, tape, envelopes,printer ink, address labels, post-its, postage stamps etc. thatare used for the operation of a home business are a deduction.

11) Interest Expenses All of the interest accumulated on credit cards for thedevelopment, maintenance and improvement of a home basedbusiness is a tax deduction. If you have any loans that weretaken out to start a home business, this interest is also taxdeductible.

12) Office Space Rent, taxes, mortgage interest, utilities, phone etc are partlydeductible. The area devoted to a home based enterprise must beused exclusively for business purposes and the deduction canonly be a percentage of the total house costs based on theamount of space the home business uses. Using one room for anoffice and another room for packaging your products creates atax deduction for both rooms.

This is not an all inclusive list of tax deductions for yourhome business. The IRS has a publication (IRS publication 587:Business Use Of Your Home) that clearly defines all of theallowances that you can take. The best approach for completingyour tax return is keeping accurate records. The idea ofsacrificing several hours of your time for calculating taxes isnot very exciting. Unfortunately, it is a task that all of usmust face. Good record keeping within the guidelines of theseideas will develop more time for yourself and less time for theIRS when you begin your return.


The way to get ahead is to start now."


About The Author: John Fortner lives in Oregon and works fromhis home through his online pursuits. He is the owner ofBest-Income Opportunities which offers free information andproven opportunities for creating work at home businesses. Tolearn more about this topic please visit his website at:http://www.best- incomeopportunit ies.com/ To receive freeinformation for starting a home business please go to:http://www.Best- IncomeOpportunit ies.com/optin. html



Home Business Chicago

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