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By Deb Bixler
Home Office Deduction Benefits
Did you know that if you work in direct sales you can help offset your taxes with a home office deduction? Just because you work from home doesn’t mean your taxes can’t work in your favor. Learn the many tax deductions that are available to you and why they can benefit you so well.
If you dedicate any portion of your home to your home office, then you can use that percentage of space as a tax writeoff. Say that 30% of your home is used for your office needs; this means that 30% of your utilities as well can be written off for tax purposes. Same goes for the desk you sit at to do your work, the gas you put in your car to go to direct sales events, and the meal you bought when you traveled to that craft fair. Anything that relates to your home office can be partially written off. You just need to know your deductions.
What Is Deductable
Just what is tax deductible? In short, if you use something in your home partially or wholly as part of your home business needs, then you can use it for a tax deduction. Your printer ink, that office chair, the electricity you use, the Internet bill, stamps, gas, miles on your car, that new outfit for a meeting- these can all be used as a tax deduction provided you have documentation to back up what they were used for. You don’t have to go too far to find a tax deduction in your home office expenses.
Income Tax Deductions In Direct Selling
How are these tax deductions beneficial in direct selling businesses?
In reducing the amount of taxes you owe as an independent contractor or business owner, you lessen the amount of taxes you pay at the end of the year. Since any home office deduction can help out come tax time, it’s important to save receipts and information now so you can utilize them to your advantage later.
Thousands of resources are available online to assist with every step when starting a direct sales business and to keep you informed when making decisions from startup methods to profit-increasing strategies.
Like all professions, listening and learning from experienced pioneers of the industry, can be a pivotal factor in staying motivated and learning to use resources effectively. Every business owner has a different style in which they operate – this is why self-motivated research, webinars, and organizational tools have grown in popularity. The digital age has changed the way in which the business industry communicates, making now, even amidst a declining economical state, the best time to put down the hesitation and seize existing opportunities.
The benefits on top of the home office deduction is that starting your own business from home with high unemployment rates can actually be used to your advantage.
Depending on the type of business venture you wish to deploy, finding good part-time or full-time assistants will never reflect such affordable options. Also, many home-based businesses realize great profit in recruitment type programs, where you make money when people under you make money. With jobs hard to come by, more and more people are seeing the benefits in extra income from a home business, making recruitment easier and more attainable than ever.
Just because you have a home based business doesn’t mean you won’t owe taxes, but just because you have to pay taxes doesn’t mean you can’t write off valid office expenses. As your own business, it’s up to you to make sure you take advantage of all the opportunities placed before you to get any home office deduction you can. Your tax accountant can help you find deductions as well, and you may end up paying less in taxes than you thought. After all, you do own a business, and just because you do direct sales doesn’t mean you can’t get a tax break or two along the way.
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