There are many tax advantages to having a home based business. I have personally listened to a list of over 50 ways one can document and deduct business expenses from your U.S. Income Taxes, some of which you may have never considered!
The IRS requires written documentation to qualify for any deductions so be sure to keep all your receipts! I keep my receipts in an annual folder, ensuring all of my receipts stay organized and ready for tax season.
After close examination of the home based business industry, statistics showed that most individuals never produce a profit from their company. In fact, only 3% of those who own a home based business produce a profit. I’m part of that 3% club so I’m always careful to save my receipts to ensure I can claim the deductions.
The following is a partial list of potential deductions for your business:
Your Membership Fees
Insurance (not deductible for those without a home business!)
Cleaning Service (provided they clean where your office is, too!)
Landscaping (if people come to your house on business)
Personal Training Expenses
Company Literature and Catalogs
Reproduction costs (photocopies, etc.)
Labor Expenses when you hire your children!
Business Related Travel Expenses
Meals while on Business
Always consult with your accountant as laws vary in each state and country and from year to year. Having a home-based business will help you to keep more of your hard earned money in your bank account. It pays to work at home!