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Home Business Tax Tips

Home Business Tax Tips

Running a home based business reaps many wonderful tax deductions that other businesses some times may not claim. Unfortunately to many small business owners end up paying the government taxes every year because they are unaware or several small business deductions that are available.

Most of the time any expenses that are related to your business can be added as a deduction on your taxes. If you do not pay taxes through out the year, deductions can help you from paying a large amount of taxes each year and can also adjust earned income. Try to avoid paying large amounts of taxes or owning any money by keeping track of simple things!

Each business is a bit different so be sure to mention these ideas to your tax advisor or accountant to see if your business can qualify for these deductions.

1. If you join any business or purchase into any franchise, the expenses such as kits, or franchise fees may be claimed as a deduction.

2. Business Supplies. Be sure to save all receipts for any supplies you purchase for your business use. Computer paper, business cards, pens, catalogs, or any items you purchase and use for your business .

3. Advertising - Most advertising can be claimed on your taxes. Keep all receipts for any newspaper ads you may run, or any advertising you do online. Advertising is a business expense and in most cases can be written off.

4. Items Given Away - Keep a list of any items you may give away, and the costs of these items. Most freebies may also be written off.

5. Phone bills and internet access - If you have a phone line for business use or have the internet in your home or office for business use, save all receipts for each bill paid. These items are business expenses and may also be written off.

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