Home Based Business Tax Benefits
Find Today’s Daily Deal on Your City’s Best Things To Do at Groupon.com!
Home Based Business Tax Benefits
Home Based Business Tax Benefits
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers
0 && $ .browser.msie ) {
var ie_version = parseInt($ .browser.version);
if(ie_version Hello Guest
Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Business > Home Business > Home Based Business Tax Benefits
Home Based Business Tax Benefits
Posted: Jan 14, 2011 |Comments: 0
|
]]>
Did you know owning a home based business has considerable tax benefits? The idea that only the rich have access to tax benefits is a myth!
The first step is to own a home based business and run it with the intention to make a profit. The crucial word there is “intention”. You don’t really have to make a profit to take advantage of these benefits. Now, you can begin a home based business for little cost and can run it part-time from your home while having a full-time job.
In time, and with some effort on your part, you will be able to leave your day job and work from your home full-time and take advantage of all of the benefits a home based business has. The best part is you can take advantage of the home based business tax benefits as soon as you start your new business!
Owning a home based business allows you to deduct some personal expenses you wouldn’t usually be able to deduct. These things include but are not limited to: dining out, a new computer for the office, dental and medical expenses, and some vacation related expenses. The money you can deduct for operating a home based business is not insignificant and can amount to well over ten thousand dollars.
Here are the top five deductible expenses for Home Based Businesses:
1. Vehicle Deduction
This IS the most complicated home based business tax benefit you get. It is also where most people get into trouble with the IRS because they didn’t properly document their vehicle related deductions. If you are going to use vehicle deductions, I can not stress enough that you MUST document everything properly. Keeping a diary or travel log to track mileage, maintenance costs, etc. will save you time and many headaches.
How does the vehicle deduction work? Basically, you determine how much of the time you use your vehicle for your home based business as a percentage. You are then permitted to take that percentage of time and apply to the cost of operating your vehicle. For example, if you use your vehicle 60 percent of the time for your home based business, you are allowed to deduct 60 percent of the costs of operating the vehicle.
2. Meals and Entertainment Deduction
First things first, in order to take advantage of this tax benefit, you must have proper documentation. This primarily means you need to save your receipts and record who you spoke to about your home based business. Normally, you will be able to deduct up to 50 percent of the cost, but make sure you check beforehand.
As long as it is related to your home based business and document the costs properly, you can also deduct up to 100 percent of the expenses of entertaining people in your home. You may come to recognize the tax benefits are much greater if you entertain in your home instead of taking someone to your favorite restaurant.
3. Home Office Deduction
This one of the more complicated home based business tax benefits, but it has the potential to save you thousands of dollars every year you own your business.
To claim the home office deduction:
1. You must render significant administrative or management activities for your business out of your home. For example, you do your paperwork, make calls, do your training, and perform other business functions out of a set area in your home.
2. You have no other office where you conduct significant management or administrative activities for your business.
3. You must use a specific part of your home exclusively for business. It doesn’t need to be an entire room though. A particular section will do.
4. You must use this designated section regularly for at least 45 minutes a day, four or more days a week. The work hours must not be occasional or sudden.
What can you deduct? You are permitted to deduct part of your home, utilities, and part of the interest and taxes you pay that are related to owning your home. You can also deduct office supplies like new computers, printers, phones and furniture used for your home based business.
4. Travel Deduction
Did you know the Internal Revenue Code (Section 162) allows you to deduct “traveling expenses…while away from home in pursuit of a trade or business…”? As the owner of a home based business, you can visit family and friends all over the world and deduct some of the expenses associated with the trip. You just have to make sure at least half of the days of your trip are “business days”. Essentially, as long as you plan ahead and document properly, you can deduct a lot of the costs associated with traveling and vacationing… Every year. How is that for a home based business tax benefit?
5. Medical Expenses Deduction
In order to take advantage of this home based business tax benefit and, you need to employ your spouse and cover them with a comprehensive family medical plan. This permits you to deduct all of the costs associated with the your family’s medical expenses. But, there two important requirements in order to take advantage of this deduction.
The first is you must have proof your spouse has done actual work for your home based business. The second is you must establish a legal document called a “Self Insured Medical Reimbursement Plan.” Do a search on that phrase in Google to see what that entails. It’s pretty straight forward.
That’s it. Utilizing these five strategies correctly will allow you to take full advantage of your Home Based Business Tax Benefits and can save you thousands of dollars every year. The best part is they are completely legal and ethical!
If you are not sure how to do anything mentioned in this article or have any other questions, please consult a tax professional. Do not assume what you are doing is correct until you speak with a tax professional.
If you would like to learn more about Home Based Businesses, please check out TimBeaudoin.com.
Retrieved from “http://www.articlesbase.com/home-business-articles/home-based-business-tax-benefits-4038742.html”
(ArticlesBase SC #4038742)
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Tim Beaudoin -
About the Author:
Home Business Owner
]]>
Questions and Answers
Ask our experts your Home Business related questions here…200 Characters left
Are there any home based businesses that are not scams or require a large sum of money to start??
If you start a home-based business which is only going to earn less than 0 a month, and we are collecting 1200 amonth how does this affect my unemployment insurance?
Where can I get Home based Jobs without investment?
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Source: http://www.articlesbase.com/home-business-articles/home-based-business-tax-benefits-4038742.html
Article Tags:
home based business tax benefits, tax advantages, tax perks, tax breaks, work at home, work from home, home business
Latest Home Business Articles
More from Tim Beaudoin
How to Be Considered a Home Business
Learn how to be considered a home business in this video that will help you prepare for tax returns. (01:11)
Deductions Available for Self Employment or Home Businesses
Learn about deductions available for self employment or home businesses in this video that will help you prepare for tax returns. (02:01)
How to Report the Income for Self Employment or a Home Business
Learn how to report the income for self employment or a home business in this video that will help you prepare for tax returns. (02:24)
Deducting Business Expenses for Graphic Artists
This video by TV360 offers you expert advice on deducting business expenses for graphic artists who work from home. (00:48)
Learn how to deduct a home office in this video that will help you prepare for tax returns. (04:52)
The Advantages Of Operating A Home Based Business
Many nine to fiver’s are bucking the system by starting a home based business. Confinement to a cramped cubby hole in a perpetual maze of dividers is a thing of the past for these entrepreneurs.
By:
Michael Laleyel
Business>
Home Businessl
Feb 15, 2007
The Pros and Cons of a Work From Home Franchise
Maybe you’ve seen movies like Fight Club or most recently, Wanted and felt a comradery with the main characters who seem trapped in boring, dead-end jobs with no end or escape in sight. Unlike these films, the average person isn’t going to lead an underground fighting club or become a…
By:
Stephan Baldwinl
Businessl
Aug 30, 2008
Year’s End Real Estate Tax Tips
real estate tax tips
By:
Jeff Hammerbergl
Finance>
Real Estatel
Dec 22, 2007
Ten Values Of Business Success In Hard Times
Bart Allen Berry reveals the highlights of 15 years of customer satisfaction research on the factors which predict return and recommend rate, loyalty and preference and which correlate with the benchmarks of what successful companies do across every industry. These factors can be applied to any business as a reliable and dependable strategy, moving forward towards economic recovery and beyond.
By:
Bart Allen Berryl
Business>
Entrepreneurshipl
Nov 16, 2010
The World’s Top Retirement Havens in 2007
One of the simplest ways to improve your retirement lifestyle is to choose the retirement destination offering you more of what you want at the best price. It’s a question of priorities. What’s important to you? Is cost of living Number One on your priority list?
By:
International Livingl
Travell
Oct 15, 2007
lViews: 664
Become a Travel Agent – Why the Timing is Right
The travel industry is a seven trillion dollar industry expected to double to fourteen trillion dollars within the next decade. This lucrative industry is currently growing 23% faster than the global economy. A key factor in this growth phenomenon is the steady stream of baby boomers who are retiring, or getting…
By:
Alecia Barnesl
Careersl
Jul 23, 2008
No company today is in a particular stable environment. Even traditionally stable industries have witnessed and continue to experience turbulent change. Thus, the dynamic and changing environments that organisations face require adaptation, sometimes call for deep and rapid responses, “Change or die!” is the rallying cry among today’s managers worldwide. Forces such as, nature of the workforce, technology, economic shocks, competition, social trends and world politics act as stimulants of change
By:
Linda Balboull
Business>
Organizationall
Feb 27, 2010
lViews: 739
One24 has earned a lot of attention since it arrived in the market place this past fall. Boasting a revolutionary new multi-level marketing compensation structure and the tenure and success record of the company founder, this company has earned widespread attention despite a competitive field of nearly 4,800 health and wellness players. So what is the One24 multi-level marketing opportunity all about and what advantage is there for the prospective distributor?
By:
Carl Willisl
Business>
Home Businessl
Jan 19, 2011
Home Business Tips – How to Get More Done in Less Time
Here are six tips for helping you carve out time to actually work during your workday, so you can get more done in less time.
By:
Jamie Jeffersonl
Business>
Home Businessl
Jan 19, 2011
Personal or Individual Success? You Can Achieve Both!
Are personal and business success mutually exclusive, an “either or” relationship? I don’t think so. But a lot of people do, and as a result, many sacrifice one in pursuit of the other. You need not look far to see proof of this. Just take a look at some of the biggest names in the world of sports, or showbiz, or even the corporate world.
By:
Sandra Essexl
Business>
Home Businessl
Jan 19, 2011
Not Getting Enough MLM Leads? Here’s Why Going Online With Your MLM Business May Work For You!
Going online with your MLM business the right way will position yourself as a “go to” person when it comes to helping other business builders achieve their financial goals and can bring you an almost overwhelming amount of qualified MLM leads into your business who will greatly enhance your own income!
By:
Kim Voleanl
Business>
Home Businessl
Jan 19, 2011
Should You Market Your Network Marketing Business Online?
Many people are questioning what method they should use to grow their network marketing business. Some people say that the internet doesn’t work, and some swear by the internet. So who is right, and what should you do?
By:
Ryan Martinl
Business>
Home Businessl
Jan 19, 2011
Network Marketing Tips: Why You Should Not Become a Secret Agent
There are many network marketers who refuse to speak to people and refer them to their business opportunity. There are others who speak to only a very small handful of people. Why is that? If you become a secret agent in the network marketing industry, then you will not build an organization and not make any money.
By:
vince giornol
Business>
Home Businessl
Jan 19, 2011
8 Tips for Building a Home-Based Business, The WWW is Where the Jobs Are
With down-sizing, lay-offs, buy-outs, plant closings and a double digit unemployment rate in many parts of the country, there are a lot of people looking for ways to supplement family or individual income. Well, you’ve come to the right place. Building a web-based business is low-cost and offers virtually any would-be entrepreneur the opportunity to grow a business on-line on a shoestring budget. Where else can you find all the tools to build a paying business for less than six bucks a month?
By:
Stephanie Rosendahll
Business>
Home Businessl
Jan 19, 2011
Experience the luxury life with Sitges Real Estate Properties.
By:
Raphael Lozanol
Business>
Home Businessl
Jan 19, 2011
Home Based Business Tax Benefits
Do you know about the tax advantages owning a home based business can bring you? You could be saving thousands of dollars every year. It’s very simple and legal.
By:
Tim Beaudoinl
Business>
Home Businessl
Jan 14, 2011
The My Harvest America Business Opportunity: A Home Based Business
Is My Harvest America a good home based business opportunity? Read on to see my personal experience.
By:
Tim Beaudoinl
Business>
Home Businessl
May 07, 2010
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Tim Beaudoin has 2 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Agriculture
Ask an Expert
Business Ideas
Business Opportunities
Corporate
Customer Service
Entrepreneurship
Ethics
Franchise
Fundraising
Home Business
Human Resources
Industrial
International Business
Leadership
Management
Negotiation
Networking
Non Profit Organizations
Online Business
Organizational
Outsourcing
Presentation
Project Management
Public Company
Public Relations
Sales
Six Sigma
Small Business
Strategic Planning
Team Building
Training
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
