Before you file your income taxes you need to make sure you learn about all the legal home based business deductions available to you. The tax law changes frequently, this has recently resulted in even more deduction options for you.
Here’s something you probably don’t know about - you can actually amend past tax returns (for a certain number of years) for deductions you failed to ask for at the time.
In today’s economy for those people who work at a job it is a good idea to also have a part time Home Based Business (HBB) for 3 reasons:
1.Additiona l Income
2.Have a back up plan in case of job loss
3.The tax savings (the savings alone can pay for any costs for your HBB)
Home based business tax deductions can increase your tax refund by about $3,500. - $6.000. per year. For someone who has a traditional job they are loosing money by not adding a part time HBB.
According to the IRS the 3 basic requirements to qualify it as a HBB are:
1.Working it at least 3 – 4 hours per week.
2.Working it with an intent to profit
3.Keeping good records.
I heard a webinar put on by Dr. Ron Mueller. Dr Mueller has spent 10 years saving TENS of THOUSANDS of Home Business Owners MILLIONS of Dollars on their Income Taxes. He has written the best selling book entitled “Home Business Tax Savings Made Easy”. Make no mistake - what he teaches will benefit you. Take a look at his site to learn about the best way to save thousands on your
home based business tax deductions – click here.
For example: Here are some of the home based business deductions available to you. (Please note: I am not a tax advisor and I recommend visiting Ron Mueller’s site for professional advice.)
•Business use of your home (home office). – You may be aware that you can write off the space used for your home office. You may not be aware that it does not have to be a separate room. It can be a visually identifiable space, i.e. an area in the corner with a desk & computer.
•Your Personal Vehicle. - There are 2 options for deductions. Either .55 cents per mile OR a % of the actual operating costs. As far as mileage records go they should include the destination and the purpose. You also need to record your personal miles, no need to include a purpose for them. You only need to keep records for a typical 90 day period, then it’s not necessary to continue the rest of the year.
•Out of Pocket Health Care Costs. - 100% of ALL out of pocket costs for entire family.
That’s just the tip of the iceberg, there are many more details and deductions that I have not covered which you can learn from Mr. Mueller. And best of all, he offers simple software that keeps you organized to save you time.
With that in mind, don’t throw any more of your hard earned money away! Visit
Mr. Mueller’s site - to make sure you get all the
home based business deductions you deserve.
Debbie Amon
Home Based Business Entrepreneur
Internet Marketing
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