Home Business Tax Tips
Having a home business has many benefits as you can be your own boss and work from home in the comfort of your own time. Though sometimes it can be difficult to manage everything on your, using some simple tips from this article can help you manage your business without any issues.
1) Maintain a Business Journal: Being audited is not a problem as it is part of the business. But not prepared when audited can create big problems. All businesses have a lot of expenses, maintaining a business journal can help you to keep the business log that can be presented to the auditing authority. You can maintain every expense like buying paper for the home office printer or the expenses on other stationary materials. You can attach the hard copy to the journal page directly or can keep a digital journal with all scan copies.
2) Office Equipment: Office furniture, computers, software, and other equipment are 100% deductible in the year when you bought them. So you can buy all the necessary and highly used equipment for the office within a fixed amount without worrying about the taxes.
3) Insurance and Retirement plan: When you are working for your own home business you have to take care of your retirement as well the insurance plans. You can pay the employer’s share of retirement and insurance premiums for yourself and your employees and claim half of the amount in your personal tax deduction as the contribution to these plans.
4) Stay Connected: Business depends on networking and hence it can be very crucial to stay connected with your clients over the phone or the internet. You can own a separate phone line for your business as well have an internet connection that you can use completely for the business purposes. These facilities can be used for personal reasons too but make sure you are using it more for the business than for the personal use.
5) Investments: As a business person you can plan to have some investments that you can use for the future growth of the business. When doing such investments check how you can make them tax deductible. There can be a certain investment like the cryptocurrency trading using the newest software like Ethereum Code, which is not identified by any tax authorities. Make sure you maintain the logs for these carefully. Continue reading about the working of this software on the given link.