By: Aaron Young
Starting a business can provide big tax breaks mainly because many of our tax laws have been written to encourage business ownership in America. You may not realize that some of the things you pay for now would be considered tax deductible if they were purchased through your business. In certain cases, the tax benefits are so great that you have to wonder, “Why doesn’t everyone have their own business?”
There’s nothing that says you can’t start your own business while working for someone else. In fact, 67% of small businesses are started this way. You can even begin slowly working from a room in your home that you convert into an office. So long as you document the work you do in your office and show the IRS that it’s a legitimate work space, you’ll claim tax deductions galore using your home office as a place to build and grow your business.
With a home-based business, you have several deductions that become available to you including:
–Home repairs
-Maintenance
-Property taxes
-Utilities
-Office supplies
-Telephone and internet services
-Computers
-Cell phone bills
-Software
-Mileage
-Travel
-Meals and entertainment
Make sure if you decide to take advantage of the several deductions available to you as a business owner, that you document each and every deduction you plan on taking. The rule of thumb for business owners is to always document so that you can defend your deductions to the IRS properly.
To keep yourself protected from a potential audit or lawsuit, remember to always keep track of your receipts (excluding anything under $75), financial records, and any other important business related documents that will support the deductions you filed in your annual tax return.
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Aaron Young, CEO, Laughlin Associates, Inc.aaronyoung@laughlinusa.com
1-800-648-0966 www.laughlinusa.com
