The IRS!

Your Home Business - a Lucrative Tax Shelter

There are many tax advantages to having your own business
run from your home. You will be able to deduct expenses
you normally have in your daily life, that are otherwise not deductible.

You can deduct a portion of your utilities, entertainment, gifts,
auto expenses, children's "allowances", travel, mortgage or rent,
interest expense, and more.

To qualify for all of this, you need to treat your business seriously.
This is very important! This cannot be a hobby.

Your aim must be to eventually make a profit,
and have your business succeed. That is why the IRS is willing
to give you these tax advantages - they know you will
pay them back many times over with your future tax payments,
if your business is a success.

They are willing to give you a break to help you make

your business a success!

So remember to treat your business
as a serious business.

To prove to the IRS (hopefully you will never have to)
that you are a legitimate business enterprise you will need to:

• Keep a business diary, describing
  your daily business activities.
• Keep your business expenses separate
  from your personal ones (a business checking account and credit card).
• Make sure to record all incoming business revenue
  you receive, whatever the source.
• Learn and follow the rules for hiring family members
  (spouse and children, even grandchildren), as this will provide
  a valuable deduction, but needs to be done correctly to qualify it.
• Keep your home office separate from other areas
  of your home. It can be a separate spare room, a garage office,
  or the corner of a bedroom, living room, or kitchen - for example.
  But to qualify for the home office deduction,
  the area must be exclusively used for business.
• Keep an auto journal for your business mileage,
  which needs to be accurately documented.
  Auto expense diaries can be found in office supply stores.
• It would be wise to get a tax advisor, or accountant.
  Be sure they are familiar with home office businesses.
  Be sure they will get you every deduction you are legally entitled to.
• Keep an updated and accurate set of books.

Home Businesses You Can Start

Next Page »

Prepare to Open For Business - Set Up Your Communication Systems - "Construct" Your Office

Do Simple Accounting 101 - Prepare Marketing-the Lifeblood of Your Business - Know the IRS!

Home Business to Start - Plan For the Future - Understand for Your Success - Home