What are the Tax Advantages of a Home Based Business?
Owning and operating a home based business has many advantages and benefits over working at a regular 9-5 job. There is the simple pleasure of just being at home in addition to the large income the self-employed business owners usually brings in.
One consideration that you may not have fully explored is the qualifying deductions you can take on your tax return and the EXTRA money you can put back into your own pocket just because you own your own business.
(note that before you act on any of these ideas you should consult with your own accountant)
Home Office Deductions
Your office at home and related expenses are allowed deductions according to IRS guidelines. To qualify, your home must be the primary place where your business is conducted. Additionally, the office space must be used exclusively for your business. It is best to have a room that is obviously equipped for business use only. Should a question arise, there must not be any doubt that the room is used for other purposes. Needless to say, keep the guest bed in another room. Details of what qualifies as a home office and what can be deducted is explained more fully in various IRS publications found on their website at http://irs.gov
This deduction could be worth thousands of dollars based on what comparable rental rates run per square foot in your area.
Home Office Building Expenses
You can deduct home office improvements and repairs also. So, if you were to paint your home office, it is considered an expense associated with conducting business from your home and it is deductible. You can also deduct mortgage interest as a percentage of the full mortgage paid on your home. Lets say if your home office takes up 100 square feet of your 1,000 square foot home, you could deduct up to 10% of the interest on your home mortgage as a business expense. This also applies to those who rent.
Property taxes paid for your home also qualify at the same percentage rate as the mortgage. Home owners can also depreciate a percentage of the home over 39 years. Home expenses that are not related to your business cannot be deducted.
Using the same percentages as above, you can also write off utilities such as electric, gas, water and sewer.
Phones, Fax and Communications
The IRS always considers the first phone line in your home to be personal. Additional lines for business use including a cell phone are tax deductible. Internet service fees are deductible as a percentage depending on its business use. It could be argued that your business needs the internet service delivered to your home and that cost could all be used as a deduction.
A percentage of the secured home area and its security costs are deductible as a business cost.
Any software that you purchase for business use can be deducted. You will probably be required to write off over a period of time programs that are over $500 in value though. Check with IRS guidelines for further information. 3 to 5 year depreciation rates are common.
The premium you pay on your home owner’s insurance is partially deductible. Any insurance that covers your business specifically can be deducted as a cost of doing business. An incurred loss not covered by insurance can be deducted fully or partially depending on its’ use.
Tax Preparation Expenses
You might be able to deduct the cost of having your personal taxes prepared if your business income appears on schedule C of your 1040.
Any software that you purchase to help you prepare your taxes for your business may also be deductible.
Contributions to a self employed retirement account may also help reduce your tax liability. Inquire with a qualified specialist like a CPA to determine current laws regarding this special benefit.
Any monies spent on learning skills that are specific to your home business are usually tax deductible. Claim these under the professional development code.
You can write off transportation expenses related to your business. Traveling to and from a clients place of business, for example, would qualify. The IRS allowed 37.5 cents per mile recently. You must keep detailed records though. A journal kept in your car with odometer readings should suffice.
Meals and Entertainment
If you entertain while conducting business even if it just over a meal it is deductible. While you can only deduct 50% of the cost of meals and entertainment, it is well worth keeping records. Additionally, you can deduct your meals if you are conducting business out of town. Please remember to stay within IRS guidelines to avoid questions later. As a rule of thumb $75 a day is reasonable.
Most home businesses do not take all the deductions that they are legally entitled to mainly because the idea of an audit is so intimidating. But you have a RIGHT to saves money on your taxes by claiming all deductions that are allowed and you can defend as normal business expenses.
Just stay within the IRS guidelines, keep receipts and accurate records. If you have any questions or doubts, talk to an accountant.
Remember, tax deductions are a way to save money so you can grow your business.
That is why the government gives this money back to you – so you can improve the economy by building a business.
Crowd funding methods have now started attracting hobbyists and wannabes, but they also net REAL CASH for those business owners who use them strategically.
With our savvy methods and well researched resources at your disposal – aspiring entrepreneurs are even raising FIVE and SIX figure dollar amounts of funding that usually NEVER needs to be PAID BACK!
See examples at: http://crowdfundingdreamteam.com/membership/
More money has been raised from this source than all other combined this year (2013) so far…
And this NEW Source of Crowd Funding has Become the BEST method of Raising Capital If You Don’t Have Much in Savings and Don’t Want to Take on a Lot of Debt.
CROWD FUNDING came along a year ago thanks to the passage of the jobs act and you can get this kind of money, from a huge Pool of public equity, if you use my new tools.
Could you use CASH put into your account as fast as 72 hours after you completed a successful crowd funding campaign?
If your answer is YES…
Then you WANT to learn how to get this funding.
Because the dream of owning your own business, inventing a new product or launching that big idea has always been the one sure way to get rich. The world is filled with success stories of people just like you that struck gold with a good business idea.
But the challenge everyone faces is how to get the capital required to make your dreams come true.
The new solution of where to get money for your business may surprise you.
See examples at: http://crowdfundingdreamteam.com/membership/
Many people ask me what to do when they have a registered business that is out dated and in default.
Like an LLC or Corporation they have not filed taxes on and have not paid annual state renewal fees on.
Well, my usual answer is THROW IT AWAY.
Forget about it.
If it has no assets then it is probably worthless.
You have basically lost your positive business rating and will no longer be able to use the age of the business to any advantage, so in most cases, just start a new business by registering another company name.
This will give you a fresh start and let you continue to pursue new funding resources for your new company.
From the desk of Thomas Kish,
RE: $5K-$10K profit with NO competition
A friend of mine, who I have worked with for 5 years, has just
stumbled onto a brand new ‘hidden niche’ in real estate that
savvy investors are using to bring in $5,000 – $10,000 per deal…
…it’s BRAND NEW and I’ve never seen anything like it!
The cool part is it’s just a simple twist on a time tested and proven strategy.
It’s easy to do.
These deals are lying around EVERYWHERE being ignored and there
are tons of them in every community across the country.
Whether you’re brand new to real estate investing or a seasoned pro
you can get these deals done easily and profit quickly because the
technique is so simple, yet so powerful.
This is THE PERFECT strategy for today’s market and the best part is…
- You DON’T ever buy these properties, so you don’t need cash!
- You DON’T need to have a list of buyers, as they will flock to your deals!
- You DON’T need banks, hard money lenders, or traditional financing! Neither do your buyers!
- You DON’T have to spend much in marketing to find deals…they’re everywhere!
- You DON’T need a license or even previous experience (it’s that easy)!
You need to see this:
You’re going to love the brilliance of this strategy, how it is exactly right for today’s troubled housing market – and how simple it is to make money on deals because…
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The market is yours! You have no competition – YET.
Go check it out right now…you’re going to love the simplicity.
When the common question comes up – Tom, do you have an affiliate program for your company that people can make money from just by referring other people to you?
My answer is YES…
…But, you have to be manually approved for this and you must be using our programs.
(What is an Affiliate Program)
Affiliate programs have been around for a long time and they are a simple way for you to be paid by a company for sending business to it.
When you tell your friends, or tell someone online, about our business program, if they BUY it…
You get paid a cash commission by me and my company for the referral or recommendation.
You can’t automatically go sign up to do this.
You MUST be manually approved to become an affiliate of mine and get paid.
We do this for a lot of smart reasons.
Since we pay out pretty nice commissions, there is a lot of demand for our affiliate program.
We need to screen people that want to recommend us to others and make sure they are doing it the right way.
Every business has compliance steps it needs to meet and we want to make sure all guidelines will be followed by anyone that wants to tell other people about our services.
ALSO…just as important
We would NEVER let someone become an affiliate who had not paid for one of our programs.
2 REASONS WHY!
It costs money to pay my staff to manage our affiliate program, so we can’t have losers in the program that keep wasting time, have not bought anything and never do anything productive.
So we manually weed out people that don’t really have a clue of what it means to be an affiliate.
(then we can spend our time helping people that really need it)
AND…if someone has not used our programs before, it is pretty silly to think they would make a good spokesman for our services.
So if you want to get into our valuable programs call today.
If you want to also be an affiliate of ours and earn BIG cash commissions we can help you with that too!
You can call 877-622-7439 and talk to our helpful staff.
Our programs consist of:
*cheap complete funding systems
PS: want a surprise? Look at this at:
April 19, 2013 – 1:12 AM Joseph (jpatt1957@XXXX.com)
Asks – Can I use business to purchase foreclosed home and flip or rent them for profit?
Tom’s Answer – Yes, our recommended funding can be used for anything.
April 16 – 9:42 PM Cliff (goody3060@XXXX.com)
Asks – Do you need a Dunn & Brad Street score first before getting any funding?
Tom’s Answer – No, this derby dozen funding program does not require a D & B score.
April 16 – 9:31 PM Jacquelynn (info@XXXX.com)
Asks – can you get the $200K loan in one cash loan, multiple loans or is it in vendor credit?
Tom’s Answer – These are NOT vendor credit lines, these are all cash based business lines of credit. You will get several lines together before it all totals $200,000.
April 8 – 5:55 PM D.Pennywell(dwaynepennywell@XXXX.com)
Asks – How many lenders would I need to submit a application to to aquire 200K in funding.
Tom’s Answer – typically you will work with 4 to 6 lines of credit to get near $200,000.
April 3 – 12:24 PM Leslie (cpa.realestate@XXXX.com)
Asks – Hi Tom, Do you have an affiliate program? We’d like to consider using your platforms for our clients. Leslie Watson, CPA
Tom’s Answer – Yes, we offer an affiliate opportunity to make money referring people to us. So when you order you will automatically get all the affiliate access and we will help you make commission from this.
There is a great book called the Walmart effect which I have read many times since it was published several years ago.
Frankly, I hate Walmart. I never shop there. (well maybe 3 times total)
They treat people like garbage and they make little kids work like slaves over-seas to produce inferior merchandise just to enrich themselves.
But their poor reputation is catching up to them as their share price has not risen a penny in about 10 years.
If you like Walmart prices, I have no problem with that. Everybody needs to follow their own conscience.
But the Walmart EFFECT on this country’s thinking needs to be shaken up.
Look at 2 different T-shirts from Target and Walmart.
You could save 10% on the price, but that is because it is made with crappy fabric and it will be ruined in less than two years of wash and wear.
So the cheaper shirt really costs MORE because you have to replace it twice as often as the quality one.
Why am I saying all this?
Because I think you should be shopping for the long term value AND cost of what you need (not only looking at the Walmart effect when you shop).
Our business education company has been around for almost 10 years because we strive to provide reasonable prices and great long term value. Meaning what you get from us lasts a LONG time.
Our stuff is very comprehensive so it is a great deal NOW and keeps providing more and more value the longer you use it for your business.
And we are always here to help more as your business needs grow and change. (we have helped hundreds of thousands of people!)
You can’t find a better or more affordable business planning service than ours.
Most are a lot more than ours and if any are less it is because they are leaving out critical elements that you will quickly need.
So don’t fall for the Walmart effect when you are building your business.
Get the best value and best price, like those we offer, and you will never go wrong in the long run!
You can call 877-622-7439 and talk to our helpful staff.
I recently read with great interest that the author of one of my favorite books ever “Rich Dad Poor Dad” lost a big court case.
I was stunned to see some people rejoicing at this news. (isn’t it bizarre how some people find pleasure in other people’s downfall?)
At this company we’ve promoted the works of Robert Kiyosaki. We feel his writings are a great introduction to the proper mindset you need to become wealthy…
and to escape the scarcity mentality that infects some people.
So, do we now have egg on our face?
Has Kiyosaki been exposed as a fraud?
Will following his advice leave you broke instead of rich?
We’re not going to get into all the lengthy details of his bankruptcy filing, but as you’ll see…
Kiyosaki’s choice of filing for BK Provides YOU with a Great Lesson
On Wealth Protection!
You see, Robert Kiyosaki did not file for personal bankruptcy.
That is stupid for some people online to say that on their BS chat board with no fact checking ever done.
He’s still worth an estimated $80 million.
(And that money is safe from the litigators in this particular case).
It’s one of Kiyosaki’s businesses that filed for corporate bankruptcy.
And it’s not even a business that’s been actively operating for a number of years.
The name of the company is Rich Global, LLC. (don’t you love how doing biz in a simple LLC structure can be such a lifesaver!)
A former business partner sued Rich Global for royalties claimed going back to 2002-2004. Rich Global contends that the royalties were never agreed to.
The courtroom arguments on both sides were compelling. It could have gone either way. But the jury eventually decided against him and
awarded the plaintiff a $23.7 million judgment against Rich Global.
But like we mentioned, Rich Global hasn’t been doing active business since 2009. When it filed for bankruptcy in August, 2012, the court papers showed it only had $1.8 million in assets.
That’s hardly enough to satisfy a $24 million dollar judgment. So the only real recourse was to file for bankruptcy and dissolve the corporation.
But because this was a corporate bankruptcy, Kiyosaki’s personal assets were protected. NO ONE can touch that.
You see, no matter who you are or what you do, the more money you make and the more wealth you accumulate, you WILL become a target.
As every first-year law student learns …
Success Breeds Litigation
Which means in humble, everyday language: “If you’re rich, people are going to sue you.”
But don’t be fooled into thinking you have to be as wealthy and successful as Robert Kiyosaki to become the target of a lawsuit.
No matter how much money you make or how much wealth you’ve accumulated, there is always going to be someone out there who has less than you, and wants to take it from you.
That’s why our brand new Asset Protection system is so important.
Call our office and let’s talk about it.
We have been protecting wealth and building businesses for almost 10 years for people all over the country!
CashflowExperts Main Office:
Call 877-622-7439 and talk to our helpful staff.
8am pacific to 5pm
11am eastern to 8pm
Monday – Friday
If you want to increase your business income or you’re investing profits the main limiting factor holding most people back is gaining access to more business funding.
So if you missed your chance last week at your first $40k in funding…
Don’t miss this last chance Presidents Day sale until midnight tonight!
A recorded webinar is available to show you exactly how to do all this and promises to point you toward your first $40,000 in business funding with a very quick STARTER.
Watch the show at the site: