Top 10 Tax Advantages Of A Home Based Business

How To Save On Your Taxes

The tax system was designed with two groups of people in mind. The people who go out to work, pay taxes and get paid what’s left and the people who own their own business, they still go to work but then they buy or pay for whatever they need for the business and only pay taxes and what is left. Do you see the difference? In my opinion EVERYONE should own a business, You can have it out of your home, (I can give you one for free) but  once you have one, you will be blown away on the amount of money you will save on your taxes each and every year!

1. The Home Office Deduction

The Home Office Deduction allows you to deduct some or all of the expenses of your office at home and related expenses. To qualify for this deduction, your home office must be the principal place where your business is done

2. Building-Related Expenses

Repairs and improvements to your home office are completely deductible. For example, painting your home office is an expense that relates directly to doing business out of your home, so it is deductible in full. You can also claim for cleaning and maintenance costs

3. Security

You may deduct the business cost of security devices and monitoring fees as a percentage of the protected area used for business use of the entire protected area (normally the entire home). This is considered an indirect cost of doing business.

4. Insurance

If you own your home and pay home owner’s insurance, you may deduct a percentage of that expense, as with mortgage or rent expenses.

5. Utilities

You can write off utilities such as electrical, gas, and other utilities as business expenses.

6. Transportation

If you work primarily out of your home, you can usually write off the expense of getting to and from your appointments

7. Office supplies

You can usually write off many of your office supplies if you use office supplies in your business (computer, printer, paper and ink etc)

8. Phones and Communications

Additional phone lines besides your home phone that you use for business use, including cell phones used for your business, are tax deductible. Internet service, broadband, high speed cable connections are also deductible

9. Meals and Entertainment

If you take a client or prospective client out to lunch and talk about your business, it is often tax deductible as a cost of doing business. If you are doing business out of town or at your convenience on a business-related task, you can typically deduct the amount of meals.

10. Because You Can

All the tax deductions I have listed above  can be found in the IRS tax code. They are all legal and allowable.  So why wouldn’t you start your own home based business. You can start part time keeping your job as well. You might even discover that you love it AND that you are making more money than your job is paying. Your part time home based business could be the answer to all your prayers. At the very least it WILL be a way to save on your taxes

If you would like to learn how you can start a business out of your home at no cost to you, click here

NB Broker business has a small cost involved. Rep business has no cost involved. Both business’s can generate a substantial income. Choose which one is right for you.

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Why Shop Online? …The Other 58 Cents

To read the posts leading up to this one click here

So I told you earlier that 42 cents out of every dollar spent online was spent on travel. So I knew I was in the right online business and it was paying off. I was having a blast working from home and having the time for my family I did not have before.  I was also thrilled that being involved in the travel business afforded me lots of “perks” such as lower rates and upgrades on hotel rooms and rental cars, not forgetting the commissions on all my own travel.

But then I got to thinking….What about the other 58 cents? The money that was spent on the internet that WASN’T spent on travel. You know the 58 cents that was spent on everything else like clothes, electronics, books, music, printer ink, school supplies, office supplies and all the rest. If I was smart, I knew I needed to find a way to benefit from that also.  So I did!  I did my due dilligence and found out how to do it and which company to do it with. Now I am able to profit from the whole dollar spent online…. Do you know just how powerful that is?

Online sales have exploded over the past 10 years.  November 2009 saw more money spent on Cyber Monday than on Black Friday. What does that tell you?  It doesn’t take a rocket scientist to know the internet isn’t going anywhere and these numbers will double, triple, quadruple over the next 10 years or so. I truly believe I am in the right place this time.

There are 3 types of people……. Those making it happen, those watching it happen and those wondering “what happened?”  Which one are you?

Why I Decided To Work From Home (Part 3) Divine Intervention or Just Good Luck?)

(If you haven’t already, read parts one and two before reading this)

About a month after I quit my job, I had still not found my “fantastic work at home opportunity”  I was cleaning out an old drawer when I found an old address book and started to flip through it. When I got to the “Rs” I saw the name of an old friend of mine who because I had moved house a few times, had lost touch with over the years. She and I had been in a business together and I really liked and respected her.. So I though to myself, “let me give her a call” I did. After a couple of rings, a voice said “Hello?.. Roma? I said..It’s Julie How are you?  She was very surprised to hear from me. But was what even more amazing that she was in her empty home and had come back to disconnect and collect the phones. She had moved out of town a few days earlier. If I had called 15 minutes later, The phone would have been disconnected and I might never have got back in touch with her. we exchanged new phone numbers and promised to keep in touch.

I called her a few days later and we caught up on the last 7 or 8 years or so. Then she asked me a strange question..She asked me if I was making all the money I wanted. I laughed out loud. I knew from my time in “one of those things” that this was THE question. Roma…What are you into now? I asked still laughing. But she was not laughing. She was deadly serious. “Travel” she said. suddenly I wasn’t laughing any more either. “Travel?” I repeated. “Online Travel” she said. Well if you have ever heard the English term gobsmacked, That was me. I was gobsmacked.

And the rest they say……………………………is history

Why I Decided To Work From Home (Part 2) What Was Next?

Ok . So I had made the choice to stop working for someone else and work for myself. I knew with every fiber of my being that this was the right thing to do no matter how uncertain the future. I had discovered that  I loved to travel but now what? I knew the internet was a good place to start so I began to research some online travel websites.

There were a gazillion of them! It seemed everyone and his uncle had ventured into online travel. Even Donald Trump (Although I viewed this as a good thing) How was I going to compete with all these companies? They were just too big and powerful. I mean Barry Dillard paid $5.1BILLION to buy Expedia for heavens sake!

I was stumped! I began to think I had not thought this through. I started to have second thoughts. I even started “glancing” in the “classifieds”

NOOOOOOOOOOOOOOOOO!…………….. Now what?

To Be Continued.

Why I Decided To Work From Home (Part 1)

So I have been working from home for about 7 years and it was the best thing I ever did. I had spent many years working for other people, some great..some not. Either way…great or not,  THEY got to choose my worth..THEY got to choose my pay and if, and when I got a raise….THEY got to chose my vacation time. THEY got to choose who I worked with.  Does this seem right to you? After all I am the one doing the job. Not them…Shouldn’t I get to choose all that? After a while things began to really bother me. People screaming at me because I made a mistake. I MADE A MISTAKE!  I didn’t burn down your house or steal the company profits. I made a mistake. Do I really deserve to be humiliated in front of the people I work with? To be treated like a child or told how stupid I am? The answer was obvious. NO I DON’T!

So finally I decided to take that leap of faith and go it alone. It was really scary believe me. Once you get used to that weekly paycheck (no matter the amount) it is really scary when it is no longer there. So what was I going to do? I had been involved in a few part time companies over the years. I had sold a few products and made a bit of extra income. You know..one of those “things” The “P” word where you annoy all your friends and family until no one will return your calls. So I wasn’t sure that this was the way to go. Many companies promise the earth and the moon but often don’t deliver. Plus I really had no desire to be bulk buying and then trying to resell any more. I had to find what thrilled me. THAT was the secret. you have to do something that excites you or what’s the point?  It has to be more than just a paycheck.

So I sat down and though about what I had done in my life that thrilled me the most and other than becoming a wife and a mom, the answer was so obvious. I HAD TRAVELED  I had spent time in many parts of the UK, including Yorkshire, Lancashire, Lincolnshire,  and London.  I had lived in Spain, Switzerland, Greece, and the USA. I had vacationed in many many other places around the world. And I had loved every minute of it. THIS is what I needed to do. THIS was my passion. but how?

I looked into becoming a travel agent and perhaps opening up a local store. Apart from the huge cost involved and the time it would take. It didn’t take a genius to know that many of  the brick and mortar Travel Agents were going out of business.  So I started to research. You know, do my due diligence . What I found out blew me away. …… 42 cents out of every dollar spent online was spent in travel Let me repeat that…42 cents out of every dollar spent online was spent on travel. That was HUGE!  I knew then where I needed to go. I really needed to be in the online travel business.  But how?……………………Visit my blog or click here to read part 2

Do you work from home, if so, what was it that helped make the decision to do that? Are you glad you did and would you ever go back to working for someone else?