Home office tax expenses:
Home Office Deductions: Maximize Tax Benefits
By Jan Verhoeff
Everyone has some kind of home office, if you happen to run a business from
that home office, its deductible. But& There are a few important things you
need to do to make certain your deduction is provable.
Clear a specific room or space for your office. Give it a square footage,
something you can actually determine with measurements. Take everything out of
your space that is not directly related to your business. Measure your space,
and if it doesnt already have four walls, set up specific perimeters with room
dividers or temporary walls.
Create a name for your business. Get a tax license, and register your
business name, along with your ID. Announce your business to the local papers,
send out press releases, and be identifiable as a business.
Purchase office equipment and furniture for your office. Keep the receipts;
this equipment and furniture is deductible. (Including any room dividers or
temporary walls you set up to disguise your office.) This furniture probably
includes your desk, a computer desk, shelves, file cabinets, printer cabinets,
storage containers, computer, adding machine, fax machine, filing supplies,
etc., lamps, chairs, and a telephone with voice mail capabilities.
Install a separate phone line for your office. Call it a kids line or
second phone, dedicated computer or fax line, but get a separate phone line for
your business. Put a professional response on your voicemail save the Hey
Granny, Ive gone fishing leave a message at the beep. For your private line.
Use your professional voice and manners on your business voice mail. Your
customers will appreciate you for it.
Set up a schedule. Give yourself hours/work days and some time off. Plan
your work around your business schedule. Even if you include some evening and
weekend hours, you will benefit from scheduling some time off. If you work late
in the evening, take some time off in the morning to run, laugh, get together
with friends, read a book or enjoy life. It will help you focus on what you want
during work hours.
Build a business budget and a plan for making money from your business.
Without a business plan your business isnt really a business. The description
that distinguishes a business from a hobby is intent to make a profit . If you
do not have a plan to earn a profit, IRS considers your business a hobby and so
should you, limiting your deductions. Write a plan for making a profit for your
business.
Develop a process of doing business that includes such simple things as
returning phone calls, a newsletter, client lists, advertising, business cards,
letterhead, and a marketing plan.
Products or services. Create or obtain products or services to sell and
maintain a pricelist for your wares.
Home offices indicate you have a home-based business. The list above will
help you prove your business is viable in case of an audit. These will also
improve your ability to make a profit as a workable business.
Webpreneur and Content Provider, Jan Verhoeff, has learned to focus her
business on meeting the needs of others. By creating an atmosphere where many
can achieve their desired goals, Jan moves steadily toward her own goals. What
is your dream business? Are you there yet? Let Jan help you achieve your
business goals with information, resources, and consulting that works. Visit her
at http://www.freewebs.com/janverhoeff
Article Source: http://EzineArticles.com/?expert=Jan_Verhoeff
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