Home Business Taxes

Home Business Taxes

Home Business Taxes
Just the​ thought of​ taxes can scare people out of​ their minds .​
You have to​ keep all your records and documents in​ order to​ be able to​ file easier at​ the​ end of​ the​ year .​
Home business owners have their own set of​ allowable deductions that differ from other businesses .​
You have a​ chance to​ save a​ lot of​ money by knowing how to​ take advantage of​ you​ home business situation.
Know what your deductions are .​
There are several deductibles that the​ home-based business owner is​ entitled to​ .​
There are auto/vehicle deductions that can help with mileage,​ gas,​ insurance,​ and/or other related expenses .​
You can write off your business cards and stationary,​ plus any business meals and entertainment .​
All business traveling expenses,​ education,​ and even the​ interest on​ your business credit card can be counted in​ your favor .​
If you​ use a​ computer the​ Internet service and web page related expenses could be deducted as​ well .​
Office furniture,​ supplies,​ your phone and other communication devices are also necessities that have deductions .​
Any postage or​ delivery of​ goods charges is​ also considered a​ business expense .​
The home-based owner can also get deductions on​ rent and utilities that keep the​ business running .​
Deductions that you​ will want to​ use on​ your 1040 form are:
* Half of​ your self-employment tax amount,​ which can offer you​ a​ huge savings.
* as​ much as​ 100% of​ your medical insurance costs for you​ and your family.
If you​ make more than $600 per year in​ self-employment you​ must file your taxes .​
You may qualify for the​ C-EZ form if​ you​ have had a​ bad year or​ just got started .​
Your total business expenses will have to​ be less than $5000 for that year; you​ have no inventory,​ or​ have to​ file a​ 4562 form (depreciation and amortization form) .​
Make sure first and foremost that your expenses are less than $5000 and that you​ have taken all the​ deductions you​ are entitled to.
A large decision is​ who will be doing your taxes .​
You need to​ decide if​ you​ plan to​ do them yourself or​ if​ you​ want someone else to​ do them for you​ .​
There are several advantages in​ using a​ tax professional .​
They can save you​ much time and unneeded frustration .​
They can spot deductions you​ might miss or​ not know about .​
It also saves you​ from being responsible for any errors that were made in​ the​ preparation,​ which could end up saving you​ thousands .​
No matter how you​ decide to​ prepare your taxes be sure to​ claim all possible deductions to​ save you​ money in​ the​ long run .​
a​ business has many breaks for the​ taxpayer for a​ reason and you​ should make sure you​ know what you​ qualify for and how to​ save.

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