More Home Business Tax Tips....

When documenting deductions for your income taxes,here are a few more home business tax tips....

Be sure that you can produce evidence that you incurred the expense, which is usually going to be a copy of your invoice.

And also be sure that you can prove that you paid the invoice!

So keep your cancelled checks attached to your invoices for all expenses you are deducting on your Tax Return. (Remember, when an expense is charged to a credit card, it is deemed to have been paid when the card charge is incurred, so keep credit card statements also.)

...and another tip for your home based business tax write offs!

If you had a home-based business in the past three years.... have your prior years’ returns reviewed by a tax professional who is a seasoned expert in home-based-business tax law.

Click Here to Find out how to Eliminate the Tax Nightmare of Your MLM Business!

The IRS 3-Part Test for Traveling Expenses...

The first step in audit-proofing your business travel deductions is to meet the IRS’s ‘3-Part Test:’

1. The travel must be usual and customary within your type of Business.

2. The travel must be conducted with the intent to obtain a direct business benefit.

3. The travel must be appropriate and helpful to developing and maintaining your business.

What’s the “51/49% Transportation Rule?”

For travel within the U.S., when you combine business travel with personal or vacation travel, the tax law allows you to deduct 100% of your transportation costs and lodging…

IF you spend more than ½ of your days on business, and less than ½ of your days on non-business purposes,

AND IF the primary purpose of your trip was business. (Of course, you are the one who determines whether the primary purpose of your trip was business or pleasure!

Did You Have Home Based Business Prior to This Year??

Did you have a home-based business prior to this year?
Are you kicking yourself because you could have paid a LOT LESS in taxes if you had known then about the tax deductions you learned about now?
Here is some good news! You have up to three years to file an Amended Tax Return (Form 1040X) any time you discover errors or oversights on a previous year’s Tax Return! That includes deductions you missed out on!
If the IRS ends up owing you a refund (as they probably will), they’ll also pay you interest (about 6%) for the time they had your money! So, if you overpaid by $1,000 in each of those years, for example, the IRS will send you a refund check for $3,000 plus interest. Cool, huh!

Click here for more 'in depth' details on all the home business tax advantages...

Enter your E-mail Address to receive our newsletter...

Enter your First Name (optional)

Then

Don't worry -- your e-mail address is totally secure.
I promise to use it only to send you Viola's Tidbits.

Return to Home Page