Smart
Tax
Planning
What
Impact
Can
A
Home-Based
Business
Have
On
Your
Taxes?
April
15th
April
15…
the
day
that
most
American's
look
towards
with
doom.
Are
you
one
of
them?
Are
you
sick
of
working
hard
every
day,
and
having
to
give
such
a
large
percentage
of
that
money
to
the
government?
Do
you
wish
that
you
could
find
a
way
to
beat
the
IRS,
but
LEGALLY?
If
so,
you
are
one
of
millions
of
Americans
who
wish
that
there
was
a
better
way
to
capitalize
more
on
the
money
they
make,
rather
than
seeing
such
a
large
portion
of
it
disappear
before
it
ever
even
hits
their
bank
accounts.
There
is
an
under-utilized
solution
to
this
problem.
I
want
to
take
the
opportunity
to
educate
you
about
the
benefits
that
a
home-based
business
can
have
on
your
tax
burden.
When
thinking
of
the
benefits
of
a
home-based
business,
many
people
first
think
of
the
following:
Financial
Gain
Independence;
not
having
to
rely
on
a
boss
or
a
company
to
provide
you
with
everything
that
you
need
Sense
of
Self-Worth
and
Accomplishment
Have
you
ever
thought
of
a
home-based
business
as
a
venue
for
Tax
Relief?
Most
people
do
not
realize
just
how
much
money
they
can
save
by
starting
a
home-based
business.
Obviously,
the
goal
is
for
you
to
make
money
with
your
home-based
business,
but
even
if
it
does
not
turn
a
profit
right
away,
you
can
still
benefit
from
the
mere
fact
that
your
business
exists
and
that
you
are
attempting
to
turn
a
profit.
Also,
your
home-based
business
does
not
have
to
be
a
full-time
venture.
It
is
something
that
can
fit
into
your
current
daily
life.
You
can
continue
to
do
what
you
are
doing
today,
and
add
a
home
based
business
into
your
focus.
Eventually,
your
goal
can
be
to
replace
(and
greatly
exceed!)
the
income
that
you
generate
from
your
"j.o.b."
The
fact
is
that
most
people
still
struggle
with
finances,
but
there
are
things
that
you
can
do
legally
to
ease
that
burden.
If
you
operate
your
own
home
based
business,
then
there
are
many
deductions
you
will
be
able
to
take
every
year
that
will
dramatically
lower
the
amount
you
have
to
pay
to
the
IRS
in
taxes.
I
recommend
that
you
consult
an
accountant
to
find
out
exactly
what
you
are
legally
able
to
deduct
for
your
home-based
business.
But,
to
give
you
an
idea
of
the
possibilities,
the
following
is
a
list
of
deductions
that
will
be
available
to
you
if
you
have
your
own
home
based
business:
 |
Home
Office
Expenses:
Deductible
business
expenses
can
include
a
portion
of
your
rent
or
mortgage,
real
estate
taxes,
utilities,
insurance,
painting
and
repairs.
The
actual
amount
that
you
can
deduct
depends
on
the
percentage
of
your
home
used
for
business.
You
can
figure
the
percentage
of
your
home
expenses
that
are
deductible
by
first
figuring
out
the
percentage
of
your
home
that
is
used
exclusively
for
business. |
 |
Travel
Expenses:
You
can
also
deduct
your
travel
expenses.
These
deductions
include
things
such
as
airfare
or
other
transportation
costs
as
well
as
your
hotel
or
other
lodging
expenses.
There
are
limitations
on
deductions
for
meals.
The
best
part
is
that
if
you
do
your
planning
properly,
you
can
mix
pleasure
and
business
and
still
get
the
benefit
of
a
deduction.
|
 |
Entertainment
Expenses:
Meals
and
Entertainment
Expenses:
You
can
deduct
50%
of
the
cost
of
a
meal
in
a
restaurant,
or
an
entertainment/sporting
event
like
a
concert
or
a
football
game
as
long
as
business
takes
place
before,
during,
or
soon
after
the
event. |
 |
Depreciation
Expenses:
You
can
take
a
deduction
for
property
you
purchase
for
your
business
that
is
intended
to
last
for
more
than
one
year.
This
might
include
items
such
as
computers,
office
furniture,
and
machinery.
You
are
not
required
to
depreciate
long-term
business
property
because
if
you
prefer,
you
have
the
option
of
deducting
the
entire
expense
in
a
single
year
instead
of
spreading
it
out
over
several
years.
|
 |
Professional
Services
Expenses:
You
may
need
help
getting
your
business
established
as
well
as
assistance
to
keep
it
running
properly.
Fortunately,
you
can
deduct
any
fees
that
you
pay
to
attorneys,
accountants,
consultants,
and
any
other
professionals
related
to
the
operation
of
your
business. |
 |
Advertising
Expenses:
The
old
adage
goes:
"Early
to
Bed,
Early
to
Rise…
Advertise!
Advertise!
Advertise!"
The
key
to
any
business
is
your
ability
to
advertise.
There
are
countless
ways
to
advertise
for
free,
especially
with
the
advent
of
the
Internet.
However,
the
operation
of
any
successful
business
will
eventually
lead
to
the
spending
of
advertising
dollars.
Any
advertising
that
you
do
will
count
as
a
business
expense,
and
therefore
can
be
deducted.
|
 |
Taking
a
Loss:
The
majority
of
home
businesses
do
not
turn
a
profit
right
away,
which
means
that
it
is
entirely
possible
that
your
home
business
|
