Tax Deductions For The Home Business Owner

Tax time can be one of the most anticipated periods of the year. After the holidays have become a memory and before the fun of summer begins, we must devote several hours of our lives to completing this project. This can be especially challenging for the home based business owner. There are several deductions that are available for the work from home individual. These ideas can help reduce your tax burden.

1) Accountant Costs

If you use the services of an accountant, these costs are totally deductible for a work at home business.

2) Advertising Costs

Any amount of money that is spent to advertise an internet business is tax deductible. Business cards, flyers, newspaper ads, internet ads, etc.

3) Bank Fees

All of the bank costs incurred to run a home business are tax deductible.

4) Research And Training Materials

Any educational materials purchased to increase your expertise for developing, maintaining and improving a home based business are a tax deduction. This includes software and E-books.

5) Internet Service Provider

Keep a log of the business hours spent online and personal time on the internet. The business percentage can be taken as a tax deduction against ISP costs per month.

6) Web Hosting Fees

The monthly costs paid to a web host provider for managing an internet business site are deductible.

7) Long Distance Telephone Costs

Keep an accurate account of the amount of money spent for long distance phone calls that relate to a home business.

8) Office Equipment

Your computer, printer, fax machine, answering machine, scanner, furniture, remodeling, etc. are tax deductible when used for a home based business. Some people choose to depreciate the cost over several years or take the entire expense at one time. Your tax situation will determine the decision.

9) Shipping Costs

If you ship products, the amount of money spent for boxes, tape, packing peanuts, bubble wrap, etc. is tax deductible. If you use a personal car to transport packages to the post office, keep a log of the distance traveled.

10) Office Supplies

Paper, stationery, folders, pens, pencils, tape, envelopes, printer ink, address labels, post-its, postage stamps etc. that are used for the operation of a home business are a deduction.

11) Interest Expenses

All of the interest accumulated on credit cards for the development, maintenance and improvement of a home based business is a tax deduction. If you have any loans that were taken out to start a home business, this interest is also tax deductible.

12) Office Space

Rent, taxes, mortgage interest, utilities, phone etc are partly deductible. The area devoted to a home based enterprise must be used exclusively for business purposes and the deduction can only be a percentage of the total house costs based on the amount of space the home business uses. Using one room for an office and another room for packaging your products creates a tax deduction for both rooms.

This is not an all inclusive list of tax deductions for your home business. The IRS has a publication (IRS publication 587: Business Use Of Your Home) that clearly defines all of the allowances that you can take. The best approach for completing your tax return is keeping accurate records. The idea of sacrificing several hours of your time for calculating taxes is not very exciting. Unfortunately, it is a task that all of us must face. Good record keeping within the guidelines of these ideas will develop more time for yourself and less time for the IRS when you begin your return.

“The way to get ahead is to start now.”

John Fortner lives in Oregon and works from his home through his online pursuits. He is the owner of Best-Income Opportunities which offers free information and proven opportunities for creating work at home businesses. To learn more about this topic please visit his website at: http://www.Best-IncomeOpportunities.com To receive free information for starting a home business please go to: http://www.Best-IncomeOpportunities.com/optin.html

Wells Continental Leyland, Maldon c 1979
office home business
Image by sludgegulper
At home in Wantz Road, Maldon, late 70s. WUR855J, the only Leyland in Albert Wells’ fleet. Behind is 3001UK, the ex-Don Everall Duple Continental bodied AEC Reliance which was in the fleet also for a long time. I can now place the redeveloped depot – somewhere around here which was originally the yard and garage of Hall & Son of Maldon, which Wells took over in the late 60s. The site of this photo today looks like this . The house on the left is identifiably still. Sash windows have been removed from the houses and a new estate laid out on the garage and hard standing area.
WUR was acquired when almost new from the strange Beachcomber Holidays Ltd concern which suddenly appeared , registered at an accountant’s office in New London Road, Chelmsford in 1971. The MD was a Trevor (or Terence, I forget) Beanland of Hull. Several second-hand vehicles were acquired, followed by the Duple bodied Leyland Leopard and one,possibly two 12m AEC Reliances. The firm went under shortly afterwards, possibly never having operated any holidays whatsoever. WUR857J spent weeks on end,when brand new, dumped in a public car park in Chelmsford in summer 1971 and Wells obviously snapped up 855 at a nice price. I never saw 856 being operated. (857 was in a white and orange livery) , but 856 eventually passed through the hands of Premier Travel.
Wells retired from business in the late 80s I think, and died in 1999, having operated an eclectic mix of vehicles, mainly lightweight, new and second-hand.
WUR855J was used in a pale yellow and white livery for a long time, later appearing in the firm’s Red and white, and seemed only to perform schools contracts even when new.
A known fleetlist of Beachcomber, during its Mayfly like existence will follow here…..
LHK390J Ford Transit
KNK363G Bedford VAL70 – Duple Northern
JUH376E Bedford VAM14 Duple
WUR855J Leyland Leopard – Duple 53 seater
WUR857J AEC Reliance 6U3ZR – Plaxton 50 seater
SKG709H Bedford VAL70- Plaxton, new to Cavalier, Sutton,later with Norfolk, Nayland
ATU55F Bedford VAL70 – Plaxton, new to Jackson of Altrincham.

(Bus Lists gives WUR856J identical to 857)



Tax Deductions You Can Take For Your Home Business

Many people who work from home offices know how important tax deductions can be. Without the benefit of having employers to help shoulder some of the tax burden, it can be difficult to pay one’s taxes. Deductions offer a way to pay a smaller amount of taxes. Here are some of the basic deductions that you can take when you use a home office. Note that state taxes vary from federal taxes, and you should check with your state before claiming deductions on state forms for home office expenses.

Office equipment used for your home based business is deductible. Even if you use it for other things, you can usually count it. But you will have to figure out how much of the time it is used for your business, and how much of the time it is used for personal use. For example, if you have a printer at home that you use mainly for printing invoices for your clients, but sometimes you print out your son’s homework, you need to figure that out. Maybe you use the printer 80% of the time for business and the other 20% for other uses. You will have to pro-rate the printer, though. You can claim less of a deduction each year that it is in use. The same goes for a computer. Basic office supplies like paperclips, telephone, paper, and staples can also be deducted. But they should be used strictly for your home office, and not for other things.

Your actual home office space can also be deducted. It is best if you have an entire room in the house set aside for your home business, so that the calculations are easier. What you do is figure up how much space, in square feet, you use for your home office. Then you divide that by the total square feet of the house and multiply the result by 100. That will give you the percentage of the space in the house that is used for your home office. You can then use that percentage to figure out how much of the mortgage or the rent goes to the home office space and use it for a deduction.

Even services can be deducted. If your business depends upon the Internet for its functioning, you can figure up how much of the time you are using the Internet for business (in a percentage, like around 60%). Then you can take that percentage and apply it to your monthly Internet bill. The same goes for telephone. There is even a calculation you can do for other utilities like electricity.

Fees you pay for your business’s Web hosting and domain can also be deducted. Additionally, advertising also counts as an expense, so if you advertise your home business in the local paper, the cost can be deducted. Just make sure that you keep careful track of what you spend, and make sure to save the receipts. And if things look to be getting a bit hairy, you can consult a tax preparer to help you with the business end. If he or she just helps you with your home office deductions, you can deduct that too.

Find out more about running a better business, and about getting the right equipment for your office, by visiting The Office Directory

Midtown skyline looking east, NYC
office home business
Image by Dimitry B
Midtown Manhattan, or simply Midtown, is a geographic area of Manhattan, New York City. It is home to some of the city’s most iconic buildings, including the Empire State Building, the Chrysler Building, and the United Nations Headquarters. It contains world-famous commercial zones such as Rockefeller Center, Broadway, and Times Square.

Geographically, Midtown is commonly defined as the area south of 59th Street, east of the Hudson River, west of the East River, and though its southern border is less clear, most consider it to be somewhere between 14th Street and 30th Street. Overall, Manhattan can be divided into three geographic regions: "Uptown", Midtown, and "Downtown".

As New York’s largest central business district, Midtown Manhattan is the busiest single commercial district in the United States, and among the most intensely used pieces of real estate in the world. The majority of New York City’s skyscrapers, including its tallest hotels and apartment towers, lie within Midtown. The area hosts commuters and residents working in its offices, hotels, and retail establishments; many tourists, visiting residents, and students populate the district. Some areas, such as Times Square and Fifth Avenue, have large clusters of retail stores. Sixth Avenue in Midtown holds the headquarters of three of the four major television networks. It is a growing center of finance, second in importance within the United States only to Downtown Manhattan’s Financial District. Times Square is the center of Broadway theatre.

Find More Office Home Business Articles