Home Business Taxes....Legally Making The Most Of Your Deductions Can Save You Thousands!Having a solid working knowledge of home business taxes and how they impact your business can easily make a substantial positive difference in the level of success your business reaches as well as add thousands of dollars to your profits....every year. Click Here For Business Tax Information Directly From The Source
Did you know that a solid understanding of home based business tax law is not taught in most accounting schools and isn't even tested on the CPA exam? It is a specialty area in accounting. Not only that but continuing education classes for CPA's in most states don't even contain sections or offer courses on home business tax law. (source Ronald R. Mueller, small business tax expert) Always Stay Away From Home Business Tax Avoidance Scams And Schemes!According to the IRS, home-based businesses and tax avoidance scams have really gained in popularity over the last few years. In a consumer alert, the IRS warned that no matter how convincing the claims by shady marketers of bogus business schemes may appear, nondeductible personal living expenses cannot be transformed into deductible business expenses. That means that stuffing envelopes at the kitchen table does NOT qualify you for a business deduction for a home office, travel or entertainment. According to the IRS, many nondeductible personal expenses are commonly claimed as business expenses in home-based business schemes. Those are the areas where you need to be cautious. Fortunately, there are several easy to understand resources available that very effectively clarify the topic of home business taxes and the deductions you can legally take. To help you make the most of your tax situation. Which can literally and legally save you thousands every year.
Landmark U.S. Supreme Court Ruling US Court ruling (69 F.2d 809, 810-11 [2d Cir. 1934]) says you're ENTITLED to legally structure yourself so that you pay the legal minimum in taxes. "Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes" "The legal right of a taxpayer to decrease the amount of what otherwise would be his taxes, or altogether avoid them, by means which the law permits, cannot be doubted." ~U.S. Supreme Court,Gregory v. Helvering, 293 U.S. 465 (1935)- Judge Learned Hand (Helvering v. Gregory) Business Use Of Your HomeThe most obvious benefit of using your home as the base of your new business is the money you save on rent and other expenses. However, according to the US tax laws, you can claim tax deductions on items such as mortgage interest and real estate taxes on your home if you can prove that these qualify as business expenses. There are strict guidelines provided by the IRS, but in a typical home business these requirements are generally met quite easily, so all that you need to concern yourself with is how much you can save. How Many Deductions Can YOU Legally Claim?* Business use of your car or truck. This deduction alone can be worth thousands of dollars in tax savings and we highly recommend starting with this one as the bare minimum. * Portions of your rent, mortgage, home-maintenance and repairs. Write off a portion of your home used for business purposes. * Gifts, meals, recreation and entertainment expenses. Turn your next golf outing or dinner at a restaurant into a tax deductible business expense. * Non-reimbursed medical and health care expenses. Whatever your employer does not cover could be covered by your home-based business. *Marketing tools and office supplies. Just about every thing you need for an office to properly build your business is now tax deductible. * Mobile phones, office phone and internet service. Write off the business use portion of your home mobile phone, as well as your internet service. Even better, you could get a second business line specifically for your business. * Furniture, furnishings, computers and office equipment. Desks, chairs, copy machine, fax machines, laptops, printers are all tax deductible business expenses. * Business travel that may include a family vacation. Go on a business trip and stay a few extra days and relax with your spouse and the rest of the family. * Meetings and conventions. These can be local, out of state, or in another country as long as they are ordinary and necessary for your business. * Hire your kids to work in your business. Don't pay your children an allowance - hire your kids to work in your home-based business and you can deduct their income as a tax deductible business expense. The best part is if they are under 18 some or all of the income they receive is non-taxable so they get to keep everything they earn. * Write off a portion of your utilities. A portion of your gas, electric, water, sewer, garbage and other utilities can be a tax deductible business expense. These are just a sampling of what can be legally deducted, the trick is to know How to legally claim these types of deductions. If your looking for extremely valuable information on this subject, that can literally add thousands to your bottom line year in and year out, then do yourself a BIG favor and check out the resources below. Recommended Resources To Simplify and Help You Legally Maximize Your Home Business Tax DeductionsMy top picks for resources to greatly simplify your understanding of, as well as legal compliance with, the confusing topic of home business taxes can be easily accessed by clicking the below links or book images. All recommended resources are written in everyday language, making them much easier to understand and apply to your specific situation and will empower you with a strong working knowledge specific to home business taxes you can then implement to repeatedly save big every year. Click Here To Potentially Save Yourself Thousands On Your Home Businesss Taxes!
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