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The Many Advantages Of A Starting Your Own Home Based Business
Page 2

When tax time comes having your own business can really make sense. Home Based Businesses receive numerous tax advantages. Most of the time, any expenses that are related to your business can be added as a deduction on your taxes. Some of the deductions you can take on your tax return include:

1. Start up Costs - This includes your initial investment in your business. If you are starting in a direct sales business, this would be your start up kit and any promotional supplies.

2. Business Supplies - Anything you buy and use for your business. Business Cards, paper, pens, etc.

3. Computer - If you purchased a computer to use solely for business purposes this can be deducted as well.

4. Internet Access/ Web Services - You internet connection service and any services such as web hosting, and domain names.

5. Phone Line - This would be a home phone line used solely for business. This also includes long distance calls. Make sure to keep all phone bills for your records.

6. Advertising - Anything you do to advertise your business, whether it is online or off.

7. Automobile Mileage - All your business traveling expenses can also be deducted. This would include your gas mileage to and from events such as home parties. Make sure to keep a detailed account of this as well.

The only rule to this is you MUST treat your business like a business, and not a hobby. This is something you should be doing anyway and is one of the first rules in becoming successful. The next main thing you MUST do is keep good documentation of all expenses. This would include all receipts, credit card and billing statements, and a written log on how the money was spent on your business. Just spending a few minutes a day keeping track of your business expenses can save you an estimated $2,000-$10,000 a year on taxes!

About The Author

Stefanie Fauquet is the owner of top Direct Sales Resource site designed to help Work at Home Moms build a profitable Direct Sales Business, while being able to stay home with their kids. Visit http://www.WorkatHomeMomOnline.com today!



The Many Advantages Of A Starting Your Own Home Based Business
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About The Editor

Michael Saunders is the editor of HandsNet - a Human Services News Website, Prosperity in America - Dedicated to a Life of Abundance, and the Internet Marketing Library.

He also maintains a site with info on government grants for small business, a completely free reference Website.

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