If you are new to working at home or just would like some helpful information on
taxes, you have come to the right spot! Here is some general information on what
can be considered for a deduction if you run a home based business. The
information provided here is not intended to be tax advice. Please consult with
your own accountant or tax advisor to determine whether you qualify for any
deductions.
1. If you purchased a kit to start your business or invested any monies into
starting a business, save the receipt. That will be a tax deduction!
2. If you purchase business supplies, such as catalogs, order forms etc., save
those receipts also. This is also a tax deduction.
3. Save all receipts from customers, to prove how much you sold and what you
sold it at. This will be very important to prove your income!
4. When going any where business related, write down your miles before you start
the trip and write your miles down when you get home. Document every mile you
drive for your business. Example- Delivering products, dropping off catalogs,
training, bank deposits, visiting a hostess and so on.
5. Write down every item you give away as a gift. The item and the cost, and
what is was given for. This may be deductible as a business expense.
6. If you have a phone bill or internet access charge due to running your
business, save all bills. This qualifies as a business expense.
7. If you have any bad debts, such as returned checks from customers, make sure
to save them all. The amount of the bad debt can under certain conditions be
deducted from your business income.
8. Depending on the type of advertising you choose to do, you may be able to
claim advertising on your taxes. So save all info on advertising you have paid
for.
9. Your home office may be eligible for a deduction. So make sure you let
your tax preparer know that your office is in your home.
10. If you donate anything to a charity in connection with your business, make
sure you get a donation receipt and write on it what you donated and a value.
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