Home business tax and bookkeeping tips

Did you know….

If you had a home based business (part-time, full-time, or spare time), you can legally and morally….

• Write off your mileage a certain amount per mile.  You can check with your state for the exact amount.
• Write off your children at an additional $4,300 per child if you hire them to work in your business.
• Write off a percentage of your mortgage or rent.
• Write off a percentage of your utilities and insurance.
• Write off your entertainment, meals and travel.
• Write off your children’s education (yes, private schools).  529 plans are an excellent way to do this.
• Write off your medical, dental, eye, prescription, co-pays, etc.
• Get an immediate pay raise at your job by making sure you have the correct exemptions.  Many people do not claim all of the exemptions that they should.

Here is another list or way to look at the items that you can write off on your taxes.

• Accountant expenses if you use a CPA for your taxes
• Advertising
• Cell Phone
• Charity
• Child care
• Internet Service
• Long Distance
• Mileage
• Office equipment
• Office supplies
• Postage
• Recertification fees, conference fees, booth fees
• Travel expense
• Meals and entertainment (deduct the whole amount of your meal and any quests you may have.  It is possible that up to 50% is only useable if used for your taxes if you eat in town)
• Home repairs
• Lawn and maintenance

(A percentage of home expenses can be written off, based on the percentage of your home that you used for your business.)

(example:  200 sq foot room in a 2000 sq foot home = 10%)

If you need more details consult your CPA!  Please do not take my suggestions as tax law!  Consult your account on how to run your business with the most tax benefits possible.

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