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| MoneyDeals4U Home Business Related Blog |
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Saturday, March 29, 2008
Home based businesses are great, but once you have started that home business there are several things to think about. Everything today seems to deal with taxes now and can be incredibly confusing even when you don't have to worry about a business. You have to know what things are taxed, what you can claim, what can be deducted, it's all very hard to understand, but this article will give you a small idea on the things you need to know about home business taxes. Pretty much everything necessary that you buy that helps earn income for your home business can be deductible. The IRS defines what is "necessary" as things that are helpful and appropriate for the home business. For example, things like computers, calculators and even a desk can be deductible. However the buying the same things for personal use in another room in the house can't be deducted. There are other things that can never be deducted no matter if it was for the business or not. For example things like parking tickets, clothing and your home telephone or cell phone line can't be deducted. The use you get out of your car can be deductible as well, but is calculated in a different manner. The standard-mileage method is the one that is most commonly used and under this method you deduct 50.5 cents every mile you have driven for work. Under the other method, the actual expense method, you deduct the costs it takes to operate your car. This can include things like gas and oil, repairs, maintenance, insurance and even car washes. Using the standard-mileage method is more commonly used because it is a lot easier to keep track of, however it usually results in a lower deductible. Another thing you can deduct in taxes is entertainment and you can deduct 50% of it. Entertainment can include taking a client out to lunch or a golf game with a client and even inviting them over to your own house for food. These can be a bit tricky and keeping track of everything you do is essential just in case you get audited, you have to show proof. These are just a few things you can deduct when dealing with your home business taxes. These are the basic things people need to worry about at the beginning, but as it is important with everything, do your research so that you won't get in trouble in the future. About the Author Tom McMullen writes articles related to home business You can see more of his articles at: Best Home Business Opportunities
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