The tax filing season is slowly approaching, and it is time to think of ways you can reduce your taxes.
According to San Francisco Chronicle, here are tax tips for the home business entrepreneur:
- Keep a business journal and make sure that you backup your deductions with adequate documentation
- Write-off your workspace or home office
- Update your equipment such as computers, office furniture, software
- Save for retirement, stay healthy
- Talk up a storm – get either a second phone line or a dedicated cell phone line
- Get connected and deduct part of the cost of your Internet
- Entertain clients – wine and dine them and get a tax break
- Do business trips
- Employ your family members
- Make justifiable deductions
Note, however, the number one tax rule: Don’t mess with the IRS! As author Bernard B. Kamoroff in his article “Seven Tax Tips for Small and Home-Based Business” said:
Finally, and one almost sure way to reduce your taxes, is to re-examine every purchase, every expense you made. Make sure you’ve taken all the business tax deductions you are entitled to: expenses you didn’t record in your ledgers, expenses you didn’t think were deductible, “personal” expenses that qualify as business expenses. Neither the IRS nor your accountant is going to know about a deduction you forgot to take. It’s entirely up to you.