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Uncle Sam the IRS and Your Work at Home Business Tax Deductions
By: Karen Kay
Are you keeping up with everything for your CPA regarding your work at home business?
Do not expect your tax preparer to get you every deduction coming to you if you aren?t keeping up with it all! There are many ways you can deduct items you may not be aware of. If you work from home, and it is your own business, you may need to look at what you are keeping up with for your CPA when tax time comes.
You can deduct a portion of the space you use to conduct your business, including the cost of internet service, the cost of your computer, your telephone bill, electricity, and any items such as lamps or filing cabinets that you must have in order to conduct your at home business. Stop right now and make a list of everything in your immediate space. Chances are you can deduct a portion of the cost of these items, including the cost of operating them.
It?s better to be safe than sorry
So you take a little extra time to document the lunch date with your Mom (did you talk about your business?), the wedding you attended last week (how many miles did you put on your car? Did anyone ask you what you have been doing? Did you mention the work at home business?)
In fact, make up some business cards (tax-deductible) and be sure to give them out everywhere you go. That ?event? is a tax-deductible expense if you do.
While on vacation
1. Drop a business card in the jar at the restaurant (then your meal might be tax deductible!)
2. Stop by a few places known to allow posting of business cards such as Laundromats, Grocery stores, etc and stick a business card on the bulletin board (there?s your travel expense!)
3.Be sure to make a couple of calls to your downline or potential customers while you are out?.that keeps your cell phone on the tax preparer?s list
Do you employ your kids?
Did you know that wages you pay your kids over age 7 could really help you at tax time? You do not have to pay social security tax on them if they are under 18. This is a huge benefit often overlooked! Even if you just pay them minimum wage to help you clean up your files every Saturday!
Do you do any at-home entertaining?
Yes, it is deductible! Be sure your guests know what you do. That is all! You may be able to deduct the entire expense.
Bottom line: when in doubt, save that receipt and be sure to keep it organized. Your CPA will thank you, and will likely get you a bigger break at tax time!
Karen Kay is employed full time at Grantham Poole CPA's in Jackson, MS. She works at home part time with her husband, Michael, for Nutronix, Inc., a Wellness Marketing Network. For more information, email at kk_weeks@yahoo.com. Website: http://www.automaticbuilder.com/kkweeks |
