Home Based Business Tax Advantages

Tax Deductions you are entitled to by 
         starting a Home-Based Business!.... 
                  28 of the most overlooked Tax Reduction Strategies….

Example:

  • Travel Deductions: You can deduct 100% of your travel expenses incurred in the promotion of your Home-Based Business. Make your personal or family vacations partially tax deductible THIS YEAR!! 
  • Combine your Home-Based Business (income generation), pleasure and good health as deductions provided you meet some simple IRS rules as to the number of business days and travel days exceeding your personal days on the same trip.

Qualified Deductions:

  1. DEDUCT 50% of Meals and Entertainment: Keep simple records of the business purpose of such expenses. 
  2. DEDUCT the first dry cleaning bill when you get home from a business trip. 
  3. DEDUCT haircuts and Beauty shop visits while on a Business trip. 
  4. DEDUCT for Business Use of Your Home: Convert a percentage of your mortgage or rent and associated insurance, maintenance, property taxes, and utilities to tax deductions. 
  5. DEDUCT for Depreciation of Your Home: Only the business use percentage is tax deductible. 
  6. DEDUCT Parties in your home and other Business entertainment expenses. We are always promoting our business! 
  7. DEDUCT Advertising Expenses in Promoting Your Home- Based Business. 
  8. DEDUCT for Business Communications: All phone bills, cell phones, voice mail, pagers, etc. used in your home-based business. 
  9. DEDUCT Educational Expenses: All seminars and educational courses benefiting your home-based business are tax deductible. 
  10. DEDUCT for Supplies Used in Your Home-Based Business. 
  11. DEDUCT Online Services Used in Promoting Your Home-Based Business on the Internet. 
  12. DEDUCT the Costs of Record Keeping: software, computer equipment, etc. 
  13. DEDUCT a Percentage of Your Medical Insurance. 
  14. Payments Not Covered by Your Medical Insurance Can Be Tax Deductible. Implement a Medical Reimbursement Plan that covers your family employees. Items such as cosmetic surgery, braces, co-pays etc. may also be covered under a Medical Reimbursement Plan. 
  15. HIRE YOUR CHILDREN: Children ages 6-17 can be employed in your home-based business for up to $4000+ a year of tax deductible wages on which no payroll taxes are paid. 
  16. Private School: School expenses you are paying with after tax dollars can be converted by employing your children in your home-based business and then having them pay the tuition. 
  17. Set Up an IRA with Matching Contributions for Your Employee Children: You can accumulate a college fund for each of your children that is tax deductible for you and provides them with the funds they need. There is no 10% penalty in withdrawing these funds for college tuition and expenses. 
  18. Adopt an Educational Assistance Plan: Only applies to students over 21 who are your employees and could be your children or spouse. The maximum amount of this tax deductible benefit is $5250. (annually) 
  19. Instant Pay Raise: If you are a wage earner or salaried W-2 employee, your home-based business may allow you to immediately increase your W-4 withholding exemptions thus decreasing the amount of taxes withheld from your paycheck resulting in a higher take-home net pay. 
  20. Vehicle Deductions: Any mileage used in the promotion of your home-based business is deductible this year at 36 cents per mile. (Changes annually) 
  21. Extra Vehicle Deductions: By itemizing actual expenses certain SUV s and Trucks over 6000 lbs. GVW such as the Chevy Suburban and Lincoln Navigator can qualify for 100% depreciation which smaller SUV s and sedans do not. 
  22. Section 179 Election: This year you can deduct up to $20,000. in accelerated depreciation of newly purchased personal property obtained for the exclusive use of your home-based business. 
  23. This includes vehicles used for your business. 
  24. Learn How to Qualify Your Hobby as a Home-Based Business deduction. 
  25. DEDUCT Legal and Professional Fees: All CPA and tax preparation fees in properly filing and documenting these tax deductions are deductible. 
  26. Review Your Tax Returns for the Last Three Years: Let a CPA professional review your previous 3 tax returns for mistakes and missed deductions. The fees for filing these amended returns which result in a refund to you are tax deductible. 
  27. Learn to Audit-Proof Your Records: Any educational system that teaches correct record keeping to make you audit- proof is also tax deductible.

Remember:
“It is not what you make, but what you get to keep that counts!”

These deductions can put an extra
$5,000 to $15,000 back your pocket this Year!!

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