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Tax Savings Prove To Be A Valuable Asset To Home Business Owners
Many people may be surprised to learn that there are actually tax benefits to operating a home business. The first and most important aspect of making sure that you claim the proper expenses and deductions is to keep accurate records and receipts for easy reference. This will help to make tax time a much less stressful and much more accurate occurrence.
If you operate a home business, you may be able to deduct expenses for the business use of your home. This means that you may be able to claim depreciation for the part of your home that is a home office as well as certain types of business equipment used for the operation of your business, including computers. In addition, you may also be entitled to deduct certain utility expenses that are used solely for business purposes, including an exclusive telephone line, internet service and web hosting.
As a home business owner, you may also be able to deduct the purchase of office equipment and certain supplies. This may include a computer, printer, scanner, fax machine, office furniture and other tangibles that are directly related to the operation of your business.
When it comes to health insurance, self-employed individuals are responsible for finding their own coverage. Unlike a conventional employer who sometimes offers health insurance as part of a job benefit, home business owners are on their own. Some people may not realize it, but health insurance is a permitted deduction for self-employed individuals.
If your home business requires you to travel, these expenses are also deductible along with the business use of your car or truck. Additional deductions include gasoline, mileage, repairs, insurance, depreciation, etc. In order for automobile expenses to be permitted, the automobile must be used for business purposes and detailed records must be kept to effectively prove that each trip was directly related to business. When it comes to actual travel costs, including lodging and meals, these may also be used as a valid expense. However, the claimed expenses must only cover the business owner and not his/her spouse or children.
Other potential expenses for self-employed business owners include the cost of advertising, insurance, interest, repairs, maintenance, rented or leased vehicles, real estate and personal property taxes on business assets, etc.
The information contained in this article is designed to be used for reference purposes only. It should not be used as, in place of or in conjunction with professional tax advice. For specific information relating to allowable deductions, expenses and other tax savings permitted by law, consult with the Internal Revenue Service or your local professional tax advisor.
About the Author: Jim Mack is a home business professional that is dedicated to help his team succeed http://www.giantcashcow.com , the BEST home business out there today. To find out more about Jim go to