As a Self Employed Business Owner...there are several tax breaks that you can take advantage of....here are 3 of the most popular tax breaks
1. Home Office deduction: If you have a home office there are several expenses that you may write off on your tax return. If you have an office inside your home and that space is dedicated solely to your business then you may write off a percentage of your mortgage or rent payment, gas, light and phone bill. You may also write of any other services that you use for that office space. You will need to measure the office space by square feet, subtract the office space from the total square footage of your home. This will determine what the actual percentage of space that is used for your home office. Then you can deduct that portion from your home bills i.e the mortgage, gas, phone payments and etc.
Example: total sq ft of home is 1200sq ft your office space is 300sq ft
2. Health Insurance Premiums: If you are self employed and paid your own health coverage you can deduct the cost in full of the total premiums paid. You may also start a health savings account and deduct the amounts that were contributed to the account.
3. Supplies: You have expenses for your business, so the IRS allows you to deduct the cost of those expenses like the purchase of a new computer, printer, paper, pens, or any other legitimate expenses for your business. It is very important to keep a record of all receipts and purchases that are specific for your business in the event you are audited you have a paper trail of your expenses that you claim are for business purposes.
1. Home Office deduction: If you have a home office there are several expenses that you may write off on your tax return. If you have an office inside your home and that space is dedicated solely to your business then you may write off a percentage of your mortgage or rent payment, gas, light and phone bill. You may also write of any other services that you use for that office space. You will need to measure the office space by square feet, subtract the office space from the total square footage of your home. This will determine what the actual percentage of space that is used for your home office. Then you can deduct that portion from your home bills i.e the mortgage, gas, phone payments and etc.
Example: total sq ft of home is 1200sq ft your office space is 300sq ft
2. Health Insurance Premiums: If you are self employed and paid your own health coverage you can deduct the cost in full of the total premiums paid. You may also start a health savings account and deduct the amounts that were contributed to the account.
3. Supplies: You have expenses for your business, so the IRS allows you to deduct the cost of those expenses like the purchase of a new computer, printer, paper, pens, or any other legitimate expenses for your business. It is very important to keep a record of all receipts and purchases that are specific for your business in the event you are audited you have a paper trail of your expenses that you claim are for business purposes.
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