Tax Savings for the Home Business Owner (571 hits)
Tax Help for the Home Business Owner I BELIEVE THAT WE SHOULD BE WILLING TO PAY UNCLE SAM EVERY PENNY REQUIRED BY LAW. BUT THAT LAW DOES NOT SAY THAT WE HAVE TO OVER PAY!!!
This blog is intended to help you, the home business owner, save money by pointing out the TAX BREAKS set fourth by our Government.
So how do you know you qualify as a Home Business Owner?
The Law says that ANY tax payer who has an ACTIVE Home Based Business has to do the following:
• Run that business consistently • Run it with the INTENT to make a profit. • Keep good records
You can reduce your taxes by $3000 to $6000 a year just by doing those 3 things.
SOME ADVICE: No one should start a home business just to get the tax deductions. That is not what the tax breaks are for. The breaks are a result of having the business the reason for it.
Are you just starting your business? Here is more Great news!!!
The American Jobs Creation Act allows taxpayers to deduct up to $5000 in new business start up costs and $5000 in Organizational Expenditures (in the tax year the business is started) This is a huge benefit for both small and home based businesses.
Start Up Costs: Those expenses incurred before actually offering goods and services for sale. Organizational Costs: Expenses for business license or setting up a business entity like LLC’s or Corporations.
Thank you for reading my Tax blog. My hope is to help you, the tax payer keep that which is rightfully your.
Next week: Further information on those 3 qualifications of Home Business Ownership.
Yours Truly, Lenisa Dish Gardens by Lenisa www.Lenisa.Etsy.com Lenisahbb@yahoo.com
