Home

home_business Directory


More
home_business Articles

WRITERS WANTED! (click-me)

Feature Article:

GET REAL…THE NECESSARY FIRST STEP BEFORE STARTING A HOME BUSINESS
I have helped a large number of people start up their own home based businesses using the Internet. Over time, I have come to recognize two of the most important factors for identifying people that should NOT start a home based business. If a...
...Read More

Starting a work at Home Based Business
There is a massive amount of home-based business offers that can be found online, in newspaper ads or magazine advertisements. Some of these work at home-based business opportunities are legitimate and others are not. One way to find out if they are...
...Read More

worldabooks.com

How to Maximize your Home Business Tax Deductions for 2005

worldabooks.com       Navigation

Someone once said, ‘the best way to calculate your taxes is…Honestly’. For 2005, add ‘Smartly’ to that and you’ll get to keep more than you make. This April 15th is going to be the day of reckoning for every taxpayer. If you are smart enough with your accounting and keep your eyes and ears open, this could be your favorite day of the year. Take full advantage of tax deductions due you and you can come back richer from the IRS office.

As a home business owner who has been keeping track of every dollar spent, you can make a killing on your tax deductions with these smart taxpayer tips.

  1. Jot it all down: keep a track of all your business expenses. Maintaining timely and accurate records is something you’ll thank yourself for, this April. You don’t necessarily need elaborate documentation to do this. An easy and a very cost effective way would be to keep all your expenses jotted down in a diary. It is a good idea to collect evidence as well (in case the IRS decides to do an audit later) like receipts, bills, and statements for cheque payments etc.

  2. Shop for your taxes: this financial year you will have a choice to either deduct your state income tax or your state sales tax. Do some math and compare the two to see which tax deduction is higher. Major purchases in the last financial year should be crosschecked to see in which category they yield a larger deduction.

  3. Itemize your deductions: Before you decide to settle down for standard deductions ($4,850 for singles and $9700 for married couples filing jointly), fill out Schedule A to see if your itemized deductions are larger than the standard deductions. You might be in for a surprise. Consider itemized deductions in areas like: Home ownership, charitable donations, Medical expenses and miscellaneous deductions. According to the IRS's most recent numbers, those filers who itemized back in 2002 deducted an average of $19,673 from their taxes

  4. Go beyond the usual deductions: This year look beyond the good ol’ mortgage interest deduction to save some more. Consider medical and dental expenses, sales tax and personal property tax, education expense, damage cause by disaster or theft and miscellaneous expenses. Miscellaneous would include job search expenses, investment expenses like brokerage fees, safety deposit boxes and subscriptions to investment publications. Also included in miscellaneous is..Believe it or not… expenses of filing your taxes! This is still not over: add depreciation on your computer and cell phones used for business purposes.

  5. Entertainment and meal expenses: no…this doesn’t include lunch with friend to swap Christmas part ideas. Establishing the business purpose of a meeting is crucial for deducting expenses on entertaining.

  6. Transport expenses: if you use your own car for getting about on business, you can claim deductions on that too. Take care to religiously note down details like mileage, tolls, parking fees and maintenance costs.


A good way of finding out what more you can use for maximising your deduction is to get tax preparation software.

A word of caution here: keep ‘creative deductions’ like kid’s allowance, silicone implant etc. out of the picture. It is rather difficult to outrun the IRS, as they have three years to decide they want to verify your records and can drop in for a surprise audit.

Maximise your tax deductions in 2005 with these tips and see all the cash flow back in into your business.

Also see:

http://money.cnn.com/2005/03/30/pf/saving/willis_tips

http://www.bankrate.com/brm/search/story-taxes.asp


Daegan Smith is the Ex-NCAA Wrestler Turned Webmaster of Perfect Home Based Business Opportunities - The Net’s Top Growing Source for Home Business Information. Attention: Webmasters & Web Publishers Make Money with our Free Home Business Content for Reprint at Free Web Site Content

worldabooks.com

More Reading:


Its Not Brain Surgery Its Just An Online Home Based Business

Find The Right Work Home Business Resource

Developing Multiple Streams of Income for Your Home Based Business

Venturecon/Home business opportunities

Cash In On Bill Gates Business Strategy To Succeed In Your Own Home Business

 
Setting Up A Home Business Office

The secrets to the perfect home based business opportunity

Home Based Business Success Short And Sweet

A Home Business Mentor Can Help You Earn Big Bucks

Creating Your Own Home Based Business

home_business Home

home_business Directory

Additional Reading


Market Your Passion Online: Internet Advertising Advice From My Home-Based Business Advisor
You need to be advertising and marketing your home-based business, but what does it all mean? You need customers. You need sales! But where do you start? FFA Pages Banners Traffic Exchange Programs Reciprocal Linking ...
...Read More

6 Ways To Choose Your Own Home Business
Deciding to work from home can be a good decision or a bad one. It depends of your attitude and your love for business. If you really make the decision to start a home business you have made the first step to succeed. But now the question is: "...
...Read More

Writing Your Affiliate Home Business Plan: Who, What, Where, When and Why?
Here’s a typical scenario: You are deciding to start a home business and suddenly everyone you know has his nose in your business, literally. What do you tell them? And how do you answer your own questions? What should you expect from the company...
...Read More



 

 

Internet Search for: deductions, home_business, expenses

[an error occurred while processing this directive]

 

Copyright    worldabooks.com