The Trick is to get yourself organized right from the beginning.  (Even If You Just Throw Everything Into One Box .)

You are probably a little intimidated with having to submit  a tax reutrn and chance of being audited. Not to worry simply follow these guidelines and rest assured your next tax return will be just fine. The key is keeping good records, you must be able to back up all your home based business deductions that you are entitled to. 

Get yourself an accounting ledger booklet. Better still open up an exce spreadsheet, simply label, expense or income.

Franchise Expenses:
 If you have a monthly affiliate, make sure you claim that.  

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.

Business Supplies:
Be sure to save all receipts for any supplies you purchase for your business use. Business cards, paper, pens, ink cartridges, staples, any item you purchase and use for your business. 

Labor Expenses:
Any reasonable payments made to your spouse, kids or others who  completed a task are all deductible expenses.

Home Office:
 Be sure to let your tax advisor know that you have sectioned off part of your house as a home office. They will calculate this business expense with the mortage, property tax, insurance ï»¿ï»¿and interest.  

Long Distance Calls:
If you make any long distance calls that are related to your business, make sure you keep all phone bills showing the calls and the amounts charged. If these calls are related to your work, the cost of the calls may also be written off in most cases.

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

 This one is often forgotten, any postage cost or shipping fee may be claimed. 

 You may need you tax advisor to help you calculate  your depreciation on the cost of your business computer.  


If you have a room in your home that is used only for your internet business and nothing else, you will be able to deduct a portion of your utilities. I especially like this because I have to have these things anyway with or without the internet business and now they are tax deductible. Everything from gas, electricity, long distance and garbage pick-up are allowable deductions. Be sure that you keep your payment receipts in your accounting ledger or spreadsheet.


Entertainment Expenses:
 Make  sure you deduct dinners, parking tickets or any  other expense with any potential clients.

Car Expenses:
Keep track of your mileage, keep a speadsheet in the car and anytime you are using it for work, write it down. 

The percentage and eligibility of deduction depends on whether your trip was deemed to be business-related exclusively (100 per cent) or partially (50 per cent). Best to keep receipts and discuss with tax advisor

Keep all receipts If you attend any seminar, conference, convention or trade shows such Internet or MLM Marketing or managing your home biz. Don’t forget to include any parking costs. Costs of trade magazines, journals, web subscriptions and software.

In addition to all your deductible expenses, you will also  need to keep track of any money that you make with your business.

.In closing, keep good records, verify everything with copies of all bills, paystubs, a mileage log for the vehicle, etc. If you are ever audited, you will have your information organized and ready. Total up each category at the end of the year and take the entire booklet or excel sheet into your tax preparer.

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