What successful people know about taxes helps makes those dream life’s come true. Taxes are the dreaded part of business that so many people try to sweep under the rug and not deal with until they absolutely have too. The part that most folks are missing is what your home business taxes can do for you.
I am not a tax CPA – nor am I am person that you need to follow my advice only- seek a certified counsel. However, take some notes and ask them about it so you can get the most out of your business besides income in the bank.
I use an app on my phone to keep track of my business expenses. I pull out my phone, snap a picture of the receipt and add it to my files. Click I am done. No stacks of papers to manage. I still keep my receipts but they are saved on the server. Safe and sound and ready for reports to be printed.
Writing off a home office can be particularly nice if you have a line of work that can be neatly confined to a dedicated room.
Office furniture, software, computers and other equipment are all 100% deductible within the year that the cost is purchased.
How about retirement? As a home business you have to plan for everything in your business including your future – hopefully you will not be working a business all your life. Begin saving for your future – a home business has many opportunity’s to save money on taxes with SEP-IRA that is designed for home business plus you can write it off on your personal taxes. It is a win win!
Internet, home phone, cell phone, and utilities have a percentage that that can be deducted as well. It is always nice to know that even a small percentage is a savings.
Wining and dining your clients, or gifts to them are a nice deduction. Yes for real some of your entertainment is a write off.
Instead of taking vacations you can now take trips to meet new clients and enjoy your travels down to dry cleaning as a deduction.
The best part of teaching your kids about business is how to be responsible with money as well. Pay your kids to work in the office. Of course you will be able to pay them less then a hired employee, but it is a teaching moment for work and earning. Once they have been paid my boys had to split the money half for spending and half for their IRA.
The bottom line your home business is a nice tax break along with extra income. Take my advice on this, find a good CPA to do your taxes. They are suppose to help you with your money and offer ways to save on taxes. If they are not doing that – find you another person.