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All Aboard..........Everyone Going Global!
All Aboard..........Everyone Going Global! www.motivatedentrepreneur.com Business Plans All Aboard..........Everyone Going Global! By Ryan M. Hoback, Motivated Entrepreneur Incuabtion & Consulting In today’s society we move at an incredibly...
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10 Reasons To Start A Home Business
1: Tax Advantages Business Deductions. To qualify as business
deductions, expenses must be reasonable and necessary. Taxpayers
are required to keep accurate books and records. The records
should be complete enough to include types and sources of
income, gains, losses, costs, expenses, and substantiation for
tax deductions. Your records should include items such as bank
statements, cancelled checks, receipts or invoices, credit card
statements, diaries and logs. Here are some examples of what you
could deduct. Remember...also check with a professional first.
Tax Deductions for Home-Based Businesses Nobody likes tax time,
but owning a home-based business can literally save you
thousands of dollars a year in taxes by allowing you to turn
personal expenses into legitimate, allowable deductions.
The more tax deductions your business can legitimately take, the
lower its taxable profit will be. For example, if you earn
$100,000 per year from your job and home-based business,
combined, but have $15,000 in allowable business deductions from
your business, you would only pay taxes of your net income of
$85,000. At 30% tax rate, that could save you $4,500 in federal
taxes!
We recommend you talk to your accountant about allowable tax
deductions, but here are some tax strategies to keep in mind:
Auto Expenses You can keep track of and deduct all your actual
business-related expenses. Again, make sure you get the exact
information that applies to your circumstances.
Education/Training Expenses Costs of training meetings, training
programs and manuals, books, online training subscriptions, etc.
Legal and Professional Fees, Fees you pay lawyers, tax
professionals or consultants
Business Entertaining You may deduct a certain % of the cost for
entertaining existing or prospective customers, if it is either
"directly related" to the business, and business is discussed,
or "associated with" the business, and the entertainment takes
place immediately before or after a business discussion. (Keep
notes of the people involved and the business purpose.)
Travel When you travel for business, you can deduct many
expenses, including the cost of plane fare, costs of operating
your car, rental cars, taxis, lodging, meals, shipping business
materials, dry cleaning, telephone calls, faxes and tips. It's
OK to combine business and pleasure as long as business is the
primary purpose of the trip. But if you take your family along,
you can deduct only your expenses, just as if you had traveled
alone.
Interest Interest and carrying charges on credit cards and
business loans are fully tax-deductible.
Computers and Software Check with your accountant about the
rules that apply to your business.
Charitable Contributions are deductible Rules vary depending on
how your business is registered. Get the details that apply to
your business.
Advertising All expenses involved in advertising or promoting
your business are deductible, i.e. business cards, classified
ads, yellow pages, brochures and flyers, etc.
Household Expenses This can be one of your most valuable
deductions. To qualify, a percentage of your home must be used
"exclusively and on a regular basis" for your business.
Often Overlooked Expenses
Business related long distance services. Improvement costs to
your office space. A percentage of all household expenses,
including property taxes, mortgage interest, homeowner's
insurance, utilities, property maintenance, alarm systems, snow
removal, grass cutting, etc. Office furniture and equipment -
Have you purchased any desks, chairs, computers, files,
lamps...Up to a certain amount can be deducted in one year.
Homeowner's insurance, utilities and related expenses based on
the percentage of their use in the home office. Household
maintenance - would be deducted on a percentage basis. Snow
removal and lawn maintenance. NOTE: If there is any possibility
you will sell your house within the next several years, talk to
your accountant about the tax ramifications.
Note: This list of business expenses is not inclusive. If the
item you're thinking of using as a business tax deduction isn't
on this list, that doesn't mean it's not a legitimate business
expense. Check with your accountant Business Expenses *
Accounting & Legal fees (related to business activities) *
Advertising expenses * Automobile expenses * Bad Debts * Bank
Charges * Business Taxes & Business
Licenses * Collection Agency
fees * Conference and Convention fees * Expert Advice
(consultant fees, for instance) * Interest expenses (on money
borrowed to run your business) * Insurance expenses (for
buildings, machinery or equipment) * ISP fees (business use) *
Membership Dues (for business-related organizations) * Meals and
Entertainment expenses * Office Rent expenses * Office Supplies
expenses * Postage & Courier expenses * Private Health Service
Plan (PHSP) premiums * Promotion expenses * Property Taxes *
Repair & Maintenance expenses * Salaries of employees -
including salaries of family members *
Telephone/Telecommunications expenses * Travel expenses *
Utilities
More Reasons for working from home.
2: Personal Freedom to come and go as you please. Did you ever
want to just spend a day with your family? Did you ever want to
attend a special funeral but you had to work? What about
visiting someone in the hospital? Can you just take a few hours
off in the day? This is one of the best reasons for having a
home business...you are able to manage your own time. This does
not mean working less; rather it means flexibility of time
scheduling. 3: You get to keep the profit. All of it. This needs
no explanation. If you work hard, if you are committed to your
business, you will reap the benefits...and you will also get to
keep the profit. 4: No Boss. The stress of working for an unfair
and egotistical boss can be tremendous. It has even been
suggested that this kind of stress can lead to heart disease.
Work related stress has been the cause of marriage break ups.
Some people just cannot come home at night and leave their work
related issues AT the office. They bring their concerns, fears
and frustrations home with them...and the whole family suffers
under this strain. I had a wonderful boss for 25 years. That
changed. I work from home now. 5: No stress about co-workers.
Numerous studies show that office stress is associated with
susceptibility to illness such as cold and flu including carpal
tunnel syndrome. You spend 8 - 10 hours at work. If you do not
get along with your co-workers, if there is a lot of office
politics these hours 8 hours can seem an eternity. Office
politics and employee dissention can eat away at the inner core
of your being. 6: You get to raise your own children. By
choosing to work at home, you can choose your own business hours
and personal hours to fit your needs. Many successful home
business entrepreneurs will also hire nannies to look after
their little ones while working in their home office. They love
being there for their children and can still devote the
necessary hours to their work. 7: You get to be creative. No one
can limit your talents. You can outsource what you are not good
at doing. Instead, you can concentrate on what you are good at
doing. 8: No rush hour traffic or concerns about driving in bad
weather. Working at home means you wake up and look out the
window; you either smile or frown at what you see and go get
yourself a cup of coffee. You watch the news; you watch the
traffic problems, and then you go to work, at home.
If you have kids at the daycare, you know all too well the
stress of getting there on time to pick them up after a long day
at work. Daycare workers may love to look after your little
treasures in the daytime...but, come a certain time in the
evening, and they want your little ones gone. Many daycare
workers charge a big fee for overtime, and rightfully so, but
many also get very upset when the children are picked up late.
9: Not being tied down by someone else's demands. Do you have
to work when asked to do overtime? Are you worried about losing
your job if you do not comply? Do you feel pressured to work on
your days off? Do you make plans to be with your family only to
have your boss veto your plans? Working at home means you are
able to schedule your own time. 10: Most important...You choose
with who you work. You choose how you work. Always remember,
working at home does NOT mean working less.
One very special reason... especially this time of year, to
start a home based business is TAX ADVANTAGES! Keep your hard
earned dollars out of Uncle Sam's pocket
About the author:
My name is Ruth Bird. I have been married for 27 years to my
husband Chris. Chris has been battling the monster, MS, for a
number of years. To visit my home business and tax site, click
here.
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