You have probably thought of many of the benefits of running your own successful home business,either daycare or car washing. From the independence of working for yourself to making better income than you may currently make, there are many reasons that starting a home-based business might be right for you. One consideration that you might not have taken into account is the tax advantages that you will enjoy with a business run out of your home. Let's explore these qualifying deductions, starting with the better-known ones.
The Home Office Deduction
The deduction that likely comes first to mind that home-based businesses can take advantage of is 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. Secondly, the office space must be used exclusively for business use to qualify. For example, if you use your kitchen as your primary workspace, it is likely that you cannot take the home office deduction, assuming that you use it for personal use as well. To be on the safe side, set aside a room as your home office where possible. This will keep you on the safe side should the home office use ever come into question.
Detailed explanations of who qualifies for the Home Office deduction are defined in detail by the IRS themselves.
Moving Expenses
If you move, you can deduct the business portion of the move. For example, if half of the items to be moved were business-related, you could deduct 50% of your moving expenses. Note that moving expenses apply to sole proprietors, LLC's, and S-Corporations only. They do not apply to C corporations.
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. If you are entertaining a client, the expenses related to the meeting are deductible if they have a business purpose.
Educational Expenses
Educational expenses incurred directly to learn industry-specific skills needed for your business are often tax-deductible. For example, if you purchase the Professional Bookkeeper™ course to learn Accounting and Bookkeeping skills to start your business, this expense is tax deductible as a start up cost once your business is underway.
A Great Home Business
As illustrated above, running a home business gives many tax advantages and deductions. One of the best home-based businesses going is starting your own successful Network Marketing Business . You will make between $30 and $60 per hour if not more out of your own home in a relaxed environment. The Numis Network program teaches you step-by-step how to make a great income helping other's collect assets and manage their money.
For more infomation about home-based business advantages:
Please look at http://homebiztaxhelp.com/
