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Tax Advantages To Having A Home Business

Aug 11, 2008
There are many advantages to starting a home business of your own. Most people dream about the freedom that they will have if they can be their own boss. One advantage to having a home business that isn't always thought of is that many tax advantages that come with it.

Here are a few tax advantages that you may be able to use when you have a home business of your own.

The standard disclaimer is too of course sit down with your tax advisor or account and determine what the IRS is going to allow. However you can generally take a deduction for having an office in the home. If you don't dedicate a total room you can deduct the percentage of a room that you are using for your office.

Many home businesses do use a specific room in their home as their home business office. This allows you to take deductions on things such as portions of your utility bills or even home improvements as they relate to that portion of the house.

Other things that are deductible include your phone, your Internet connection, office supplies, cell phone, or anything that is used primarily in your home business.

If you have a home based business that takes you outside of the home you can also deduct expenses relating to your car and how it is used in the business. You need to become good at keeping good records, but you can deduct mileage and car related expenses.

Important things to remember with home business deductions are that you do keep receipts on everything. Even the smallest things can add up over a period of time. You might not even realize what you are spending on office supplies, promotional items, and even postage stamps.

Another benefit that is available in the United States is using your children or spouse to work for you. This will allow you to deduct things such as health insurance premiums, and let them earn their own money to pay for things as opposed to paying for them directly.

Because many home businesses utilize the Internet you want to keep track of things that you pay for online as well. Business expenses on the Internet can include website hosting, your autoresponder charges, membership fees for things such as traffic exchanges, article marketing, and even items such as printing cartridges and paper.

This is a few tax advantages to having a home business of your own. It is just one more reason why running an Internet business from your home is a great thing to do.
About the Author
David Ogden is an established online marketer who specializes in practical website resources and advice that have helped many people like you start their very own home based business. He can help you launch your very own money making website today, ready to take orders and pull in massive profits for you right now, guaranteed!

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