Home Business Tips – Did You Get a Refund This Year?
By the time you read this article, tax time will have come and gone. So you’re probably wondering why I’m writing this now instead of BEFORE Uncle Sam took a bite out of your wallet. The reason is simple. I find that most people learn best AFTER the hurt has set in. That way, they won’t do it again. So, if your tax return ended up sending you to the bathroom to cry, you might want to read this article. It may very well save you some anguish next year.
Most people who start their own home business really have no business doing just that. Why? Because they’re as clueless as a chipmunk in a cheese factory. They have no business sense, no business plan, and when it comes time to declare their income, no clue what they can and can’t deduct. Ultimately what happens is that they end up paying thousands of dollars (assuming they’ve made any money to declare) that they probably didn’t have to pay.
For those of you who can afford to have your taxes done by a professional, do it. Go to some place like H&R Block. They will ask you ALL the right questions and will get you the maximum return that you’re entitled to or at the very least, will make it so that you pay as little as possible. Doing it yourself, you’re looking for trouble.
However, if having a professional do your taxes is not an option then there are a few things that you should be aware of. For starters, if you have a home business and the area of the house where you work in used for nothing BUT your business, that part of the home MAY be tax deductible. Certainly, if you have a private office that you work out of, that IS tax deductible.
What about your equipment? If your computer and other items such as printers, scanners, external hard drives, or whatever are used only for your business, they are fully tax deductible. Any web hosting that you pay for or domains that you buy are tax deductible. If your Internet connection is used solely for your business, that is tax deductible. If you have a PO Box where you have money sent to you, that is tax deductible.
Any advertising that you do for your business, whether it be through pay per click, solo ads or even forum promotion, is tax deductible. If you do any traveling for your business, you can claim the mileage for that as well.
Most home business owners who just toss themselves into the mix don’t know this and they end up paying a lot more money than they should. So, if you’re one of them, this should hopefully be a painful reminder to check these things, as well as other items, next year BEFORE you do your taxes.
To YOUR Success,