7 Tax Deduction Strategies For Your Home Based business

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For any personel your largest expense are your taxes. One of the best ways to pay less tax is to have a home business. When you are only being paid by wages and salaries you virtually have no tax deductions. If you have a legitimate firm you can take benefit of a wealth of tax deductions which can reduce your taxes by ,000 to ,000 or more per year.

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Here are 7 strategies that you can take benefit of if you have a home business.

(I am not a tax accountant. Before using any of these strategies please seek the advice of a tax accountant.)

Home Office Deductions - For a while there was talk that taking home office deductions raised a red flag. As long as your firm is legitimate and you designate an area for your home office you are okay. With that you can deduct expenses that you incur in the course of doing business. You can deduct office furniture like file cabinets, desks, office decorating and even office cleaning. You can also deduct rent, utilities, insurance, property taxes, supplies, phones, and repairs made to the office area of your home. Education - You and your employees of your home based firm can deduct 100% of the cost of any instruction they receive up to ,200. Automobile - You can deduct your mileage when traveling for your home based business. Keep a log of your mileage and what you car was being used for. Travel And Vacations - You can deduct the majority of any trip if you can link it to your business. The catch is you have to be doing firm on the first and last day of your trip. Keep all receipts and document what you are doing for business. Entertainment And Meals - You can deduct any 50% of meals that are being used for your business. Either it is consuming a prospect or making a sales presentation. If you have a firm party at your home, you can deduct the whole cost of the party. Make sure the party is for a firm purpose and document it well. Medical reimbursement Plan - You can deduct 100% of curative expenses, even some of those that are commonly not covered by some original curative plans. These consist of chiropractic care, vitamins, supplements, deductibles and co-payments. Business Gifts - You can deduct firm gifts up to per man each year. If you are giving a gift to a firm and do not designate who the gift is for, there is no limit.You need to properly document your firm expenses from your personal expenses. If you are using prestige cards you Either get a card in your firm name or designate one card for firm purposes only.

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