Tax Advantages Of Starting A Home Business

Tax Advantages For Starting A Home Business

One awesome benefit of running your own home business is the tax advantages it affords you!

If You are considering setting up a home business, do yourself a favor and take a few simple steps to insure you are getting all the tax advantages you can out of being a small business owner.

First of all when you are starting up in a home business, whether it be for an easy home business like Empower Network, or a MLM or direct sales company, to take full advantage of the tax advantages of being a home business owner, take the time either before or immediately after signing up and follow these steps:

Go to the Small Business administration website and download the Fictitious name or DBA (Doing Business As) form for the state you live in. Fill out the form and send it in with your payment. For Pa. when I sent mine in 12 years ago it cost $52.00 (tax deductible). Choose a name for your business or Just use your Full Name. Your State will generally approve the name as long as it is not being used by someone else in the state doing business.
Visit Your bank and set up a free business checking account with a debit card under your new registered business name. Bring along the confirmation letter you received from your state. Do all of your business transactions through this account for tax purposes. This includes any monthly fees from your company, advertising, entertaining, gas if you are doing a presentation or traveling to meet clients etc.
Set Up Quickbooks and enter all business transactions as they occur! This simplifies everything for you when tax time comes. At tax time you just print out your profit and loss statement from quickbooks for the year and give it to your accountant.

Yes I said accountant. Don’ t even try to figure your own business tax deductions. Leave that to a professional who can get you all of the tax write offs you are entitled to.

The Great thing about running a Home Business is that you get to write off a potion of your utility bills because you are using part of your home , business start up costs, improvements such as a new personal computer, laptop or any supplies needed for your business.

Here is a list of business tax write offs allowable directly fro the IRS website:

Personal versus Business Expenses

Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.

Business Use of Your Home

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.

Business Use of Your Car

If you use your car in your home business, you can deduct car expenses. If you use your car for both business and personal purposes, you must divide your expenses based on actual mileage. Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses. For a list of current and prior year mileage rates see the Standard Mileage Rates.

Other Types of Business Expenses

Employees’ Pay – You can generally deduct the pay you give your employees for the services they perform for your business.
Retirement Plans – Retirement plans are savings plans that offer you tax advantages to set aside money for your own, and your employees’ retirement.
Rent Expense – Rent is any amount you pay for the use of property you do not own. In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. If you have or will receive equity in or title to the property, the rent is not deductible.
Interest – Business interest expense is an amount charged for the use of money you borrowed for business activities.
Taxes – You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses.
Insurance – Generally, you can deduct the ordinary and necessary cost of insurance as a business expense, if it is for your trade, business, or profession.

Tax advantages for small home business owners can have a significant impact on your overall income. Just be sure to keep good records and above all Pay estimated taxes quarterly on the money you are earning in your home business or you will end up owing money. Figure on paying 10 to 15% of what you earned as an estimated payment. Check with your accountant to be sure.

Join us by participating in the greatest Easy, Low Cost Home Business the world has ever seen…

…the video will explain it all…

Lock arms with us… and fight the forces of evil

If You are wondering just what the HECK is the Empower Network, The following video should do the trick… – just watch THIS.

To Your Empowered Success!

Click Here To Join Empower Network And Prepare To Make 2012 Your Most profitable year Ever!

Timothy Langen
484-241-6497
SKYPE timlangen47!
http://www.facebook.com/empoweredsuccess

PS:

The average home business owner is overpaying his or her taxes
by at least $20 a day because of what they don’t know. “Information
is power, but lack of information is expensive!

Get Ron Mueller’s Easy Step by Step Guide Now!
“Home Business Tax Savings, Made Easy!”