As the popular saying goes, ?A Penny Saved is a Penny Earned,? and for home based business owners, every penny that they can save with home based business tax advantages is another penny that they can count as profit. Being able to work at home and earn a good income from it is already a great reward in itself, getting these tax breaks is the cream and the cherry on top. If you don?t know yet which expenses you can use as deductions, here are some of the more common ones being employed, but remember, you need to have proper documentation in able to make them deductible.
Before anything else, make sure that you are able to first register your home business. Get a license from the local state business licensing agency to become a legitimate home business and to qualify for legitimate home based business tax advantages. You can?t just setup a desk in a small area of your home, enroll in an affiliate marketing program, start your own website and come tax filing day claim endless tax deductions. Also, tax laws may vary from state to state so make sure first that what you are filing as a deductible is allowed in your state.
Generally though, your home office, or the expenses you incurred for the repair and maintenance of your home office, is considered as a deductible according to home based business tax advantages. Depending on the area that your home office occupies and other factors where you can apply your claims, like home mortgage for that area, amount of property taxes, deductions in home insurance, you can have a very sizable deduction on your taxes. You can also include a portion of your utility bills which can be related to that particular area allotted for your home business.
Not just the area of your home office, your office supplies and service connections like the internet and telephone business calls are also part of your home based business tax advantages. If you use the internet for your business than you can claim it wholly or partly as a deduction depending on how much it is utilized by the business, this goes the same for your telephone bill. Your office supplies and equipment are also allowed deductibles including your computer, your printer, fax machine, desk, chairs, papers, ink cartridges, pens, and others.
Promotional and advertising expenses are also allowed to be considered as home based business tax advantages. Did you give away t-shirts or mugs to promote your business? Did you rent some space for advertising? Have you given products as gifts? Your costs here can be considered as deductibles to some degree.
Chase Swift is an online marketing specialist who loves helping others. If you?re looking for a simple, proven and predictable online income generating system, click here.