Lighten,Your,Tax,Load,Small,bu DIY Lighten Your Tax Load
Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in When starting a new work at home business it is very easy to become consumed by it. We spend so much time trying to get the business up and running that we may end up becoming burned out and lose our motivation. There is so much to learn and
Small business owners can benefit from numerous tax deductions, provided all business related expenses are legitimate and well documented. The tax bureau's expectations are that anyone claiming expenses from a business is truly operating a business for profit. There are certain standards that the government uses to determine what is a legitimate business or not, and any self employed person intending on taking itemized deductions will want to know all the rules and abide by them. Business expenses cannot be deducted unless the operations in the business are conducted for the purpose of earning profit. Simply starting a home based business on paper or buying into network marketing franchise without doing any work won't qualify as a legitimate business. Tax reductions are only available to those who run full or part-time businesses, meaning a minimum of 15 hours per week. The Federal Government wants to know that this venture is actually operating like any other legitimate company, even if it is run from your home. Having proof that your business is legally registered along with the following are very important: franchise license, level of expertise, history in the field, business plan, and details regarding profit/expenses. If you work hard at your business and turn a profit, or at least come close to doing so, you will be pleased with the amount of expenses that can be claimed in order to reduce your overall tax burden. If your home office is used exclusively for the business then the percentage of space that the office takes up can be deducted from your rent or mortgage. In other words, if the office space takes up about 5% of the square footage of a home, then 5% of all expenses pertaining to that space can be deducted. Insurance, utilities, and home repairs are all taken into consideration as home business tax deductions. Cleaning services, office supplies/equipment, and a portion of the phone and Internet bill are all deductible. Educational material that you purchase or any training you pursue can be deductible if it is directly related and beneficial to your business. Marketing, sales, money management, advertising, business development, self help etc books/courses are all excellent ways of not only getting tax deductions but also help you improve as an entrepreneur. Business travel is another wonderful small business tax advantage. Those who love to travel can deduct some of their expenditures when they conduct business during the trip. Records will need to clearly document when business was conducted and the company purpose in the trip. Even taking a small percentage of a vacation and applying it to an expense account can offer great benefits. A portion of expenses related to your car (licence, insurance, fuel, maintenance) or public transport costs can be eligible if you need to travel within the city or abroad to conduct your business (meeting clients, distributing marketing materials, or other). If you have to purchase business attire so you can conduct meetings with clients; that too can be deductible.Those who run a business from home may want to seek professional help when getting income tax documents completed. Most work from home individuals don't take the full reductions possible. A professional accountant or financial advisor can help find any deduction that might have been overlooked, but also know when excessive liberties have been taken. It is important to never engage in fraud. This can prove disastrous if the government decides to open the book on you. Although highly unlikely, in theory the tax bureau can launch an audit and full investigation over $1, if they feel fraud has been committed, so keep that in mind. Careful and complete record keeping will be the best way to maximize your home business tax deductions and save you a lot of money over the long run which can then be re-invested into your business to help it grow in leaps and bounds. All the best!
Lighten,Your,Tax,Load,Small,bu