Ever Considered Creating Your Own Home Based Business?
Do You Know How, The Rich Get Richer?
(They Take Advantage Of Every Tax Break Opportunity)
Let Me Explain:
By setting up a company, to promote Trage Technologies you can to deduct all business expenses, ( advertising, phone bills, new computer) This Could Greatly Reduce Your Taxable Income, earning you a larger tax refund.
We are Not Accountants and we are not offering professional or legal advice:
Tax laws are different throughout the world. Consult an accountant to determine your possible tax advantages.
Simply follow these guidelines below and rest assured that filing your business tax return will go smoothly. (For a stress free filing keep your records organized!)
Start With: Get yourself an accounting ledger booklet (in today’s world, that is an accounting software package) OR just use an excel spreadsheet with columns: date, description, date money in, money out, category, reference number to hard copy receipt: Then.. start documenting every transaction -Every Month!!.
The expenses stated below are commonly related to business activity and could be used as a deduction on your business taxes.
CATEGORIES :
Business Supplies
Be sure to save all receipts for any supplies you purchase for your business use. Computer paper, business cards, pens, catalogs, or any items you purchase and use for your business.
Advertising
Most advertising can be claimed on your taxes. Keep all receipts for any newspaper ad’s you may run, or any advertising you do online. Advertising is a business expense and in most cases can be written off.
Car Expenses
Each year I make myself a simple spreadsheet that I keep in the glove compartment of my car. Each time that I need to get office supplies, or I go to the post office to mail flyers, I write my beginning and ending mileage down on the spreadsheet. At the end of the year, I just transfer the mileage over to my accounting ledger. Keep all receipts for gas, oil, maintenance, insurance and interest on car-financing costs. Check with your accountant as to what percentage you should claim for as a business expense.
Home Office
If you have an office in your home, make sure to let your tax advisor know. Using a room in your home as an office can also be added on taxes. Check with your tax advisor as to the best way to calculate this business expense with mortgage, interest, property taxes and insurance. Make sure you keep these receipts.
Computers
If you purchase a new computer for business use, the cost of the computer may be claimed.
Postage
All postage costs paid by you or shipping fees may be claimed. Keep receipts for all shipping supplies, and postage. (they may be small amounts, but they add up)
Keep Track of Your Utilities
If you have a room in your home that is used only for your internet business and nothing else, you will be able to deduct a portion of your utilities. I especially like this because I have to have these and now a portion is tax deductible. Everything from gas, electricity, and garbage pick-up are allowable deductions. Be sure that you keep your payment receipts in your accounting ledger.
Phone Bills and Internet Access
If you have a phone line for business use or have the internet in your home or office for business use, save all receipts for each bill paid. These items are business expenses and may also be written off.
If you make any long distance calls that are related to your business, highlight them on the bill. The cost of those calls may also be written off.
Entertainment Expenses
I don’t have too much to deduct in this category, but several times a year I will meet a potential client over dinner or take my Team out to dinner. Keep track of your dinner expenses, including tips…this is all deductible also.
Labor Expenses
Salaries paid to children, spouse, relatives or others to perform work for your firm are all deductible expenses. Payments should be reasonable, and the arrangements structured properly to avoid problems in case of an audit.
Education
Keep all receipts. Some subscriptions to magazines could be tax-deductible to keep abreast of trends, ideas, the competition, pending legislation, the economy etc:
Travel
Keep all your gas receipts. (Depending on what type of business you form, you will need these to claim a portion of your gas) The percentage and eligibility of deduction depends on whether your trip was deemed to be business-related exclusively or partially. As I have mentioned – Best to keep all receipts and discuss with tax advisor.
INCOME
It is important to keep track of your income!!!.
IN CLOSING:
-Seek professional advice.
-Keep track of ALL expenses as stated by your accountant. Be sure to attach a copy of your receipts. Total up each category at the end of the year and take the entire accounting ledger booklet to your tax accountant –OR– Just simply throw everything in a box, keep everything together and hand to your accountant. Bear in mind, the more organized you are, the less the accounting fee.
If You Are Starting Your Own Business..
THE KEY…Get Yourself Organized From The Start
(Even If You Just Throw The Receipts Into A Box!)