Cut Your Taxes by 30 to 50% With a Home Based Business
You can cut your taxes 30-50% by starting and operating a home based business. There are major tax breaks available to people operating home based businesses.
Congress has decided these breaks are necessary because home based businesses provide a safety net to Americans who might lose their jobs or face layoffs during these tough economic times.
You are not dodging taxes or tricking the Internal Revenue Service. You are taking advantage of legitimate means to minimize your tax liabilities. The congress wants you to have this incentive because they believe home based businesses will be good for the economy.
Your tax refund could grow by thousands of dollars through your home-based business. That should be enough to cover all your start up costs and leave you with 100% of what your home-based business earns.
The qualifications are that you work 3-4 hours a week, keep good business records, and prove that you are attempting to be profitable.
Having a home office for your business can allow you to substitute thousands of dollars of household expenses for tax-deductible business expenses. As a home based businessperson, you have the following advantages, tax wise.
o You can deduct household expenses such as mortgage interest, utilities, and home improvements.
o You can get deductions for hiring your spouse and legal aged children to work for your business.
o You can deduct automobile expenses if you use your car in some aspect of your business. You can even put a small sign advertising your business on your car and write off gas and travel expenses every time you use it.
o Deduct your vacation, if you distribute business cards where you are staying or make business contacts along the road.
o Deduct meals with colleagues, even if they live with you.
o You can deduct part of your phone bill, cell phone bill, and the bill from your Internet provider.
o Any computer equipment like printers, monitors, routers, can be deducted as long as you are using the computer for business.
o Office supply costs like pencils, pens, paper, and the furniture in your office space are deductible.
This is a great opportunity for many Americans to cut their tax liability dramatically and have the security of knowing they have earning potential to fall back on if things were to go awry for them financially.
The best part is that the federal government is offering these tax breaks in the hopes you will take advantage of them and start a home based business of your own.
Are you operating a home based? There are a few deductions which can save on your taxes considerably. Chintamani Abhyankar explains.