Tax Return Tips – 10 Tax Tips for Your Online Business
Starting an online business is really the new dream lifestyle. Technology developments, plus the spiritual growth of many indivudals, has lead to a yearning for more time freedom. The good thing is that, although it doesn’t happen over night, you now have the ability to plant the seeds and grow your own empire by using the internet.
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It is very enjoyable to getinto your creative vortex and come up with awesome marketing, video, SEO, consulting and coaching ideas…
Then there is one thing that always keeps us grounded… it’s tax time again! Aha!
For a number people, tax time is a whole nightmare.
Do I love tax season? Yes and no.
My online business is based on publishing, and tax return tips, and we do this all year long. I particularly love when we can get a clients tax return done so speedily or when we got a big refund each year for specific clients.
I can’t explain how fulfilling it is, it’s just my thang!
But now owning my own business, it does not work out that I actually have time to do all of my own tax returns… So I use the same system with my team. They do it for me and I invest in that, so I guess I am a walking testiomonial for how super Tax Twerk really is.
I call it the hairdresser paradox! It’s a bit like the hairdresser who never has time to cut her own hair.
If you want to know more about my personal experience, or your tax situation, put it in the comments and we will personally respond to help you with free tax advice (general pointers).
To ensure that what we pay in taxes is as low as possible, we will need to know what we can deduct and what we cannot.
For a good deal of us, it’s better to go to a tax professional to make sure we get the most deductions possible. If you are among the many that choose to do your taxes, here are a few tax return tips that will help you minimize your taxes.
[bs-quote quote=”Tip: Life becomes so easy when you use a seperate business bank account for your online business. Make it sexy, you’re a #boss now.” style=”default” align=”left” author_name=”Ruth Noel” author_job=”Tax Twerk Founder”][/bs-quote]
1. Keep Organized – Always keep receipts and records of all your purchases, expenses, and income. Keep рареrs
саtеgоrіzеd аnd fіlеd. Тhіs wіll sаvе уоu а lоt оf hеаdасhеs whеn tах tіmе аrrіvеs. A good deal of records can be stored and organized electronically as well.
2. Home Office Deduction – If you’ve got a room in your home that can be used only for your business you can deduct a portion of your home’s expenses. Additionally, it has to be the primary place of business, which means that you don’t rent office space or run business elsewhere. Having a home office, you can deduct a portion of your mortgage, utilities, and home repairs.
3. Donate to Charity – You can deduct cash and property contributions, but you must keep impeccable records on all items. For example: if you contribute over $5000.00 in a non-cash property, you must get it appraised in writing for fair market value. You also must be able to itemize every item donated.
4. Mileage Log – If you use your vehicle to see clients, or for other business functions, be certain to keep a mileage log. Document the date, the destination, the purpose of the trip, the mileage from your odometer at the start and finish of the trip. You cannot simply write down what you drove 50 miles. The IRS will expect much more detailed information.
5. Hire Your Kids – If you have children, you can hire them to help you with your home business. This is good for the kids as well as helping with your taxes. Treat them nicely and check the payroll requirements based on their age.
6. Telephone Deduction – If you have just one phone in your home, you cannot deduct it as a business expense because it’s not used exclusively for your organization. You mау dеduсt lоng dіstаnсе сhаrgеs thаt аrе mаdе fоr уоur organization, but you might want to consider getting a second line used just for your business. This way the cost can be deducted.
7. Training and Information – If you take classes, attend seminars, attend networking events, or further your educationthat will help you with your organization, those expenses can be deducted. You can even deduct business-related books, papers, and other publications.
8. Mailing Expenses – If you send greeting cards for your clients and prospects, they can be deducted as a business expense. You can also deduct the postage. If you bought email addresses or mailing lists for your organization, they could be deducted as well.
9. Web hosting – Domain name, and software are all deductible expenses. If you paid someone to design your website, don’t forget that on your business expenses. However, there are some specific rules on website design prices.
10. Health Expenses – If you’ve got non-reimbursed health costs, these can be used as a tax deduction. Including insurance premiums, co-pays, and other health-related expenses. This can be a substantial deduction in case your health costs are large. Check this with your tax expert based on your location.
Conclusion
The information provided in this guide relies on general online research so make certain to check out all new tax laws or consult a tax professional.
Tax time does not have to be a stressful or painful experience when starting an online business. Make it sexy by remembering you’re a #boss now! Keep all your documents organized, keep abreast of the tax laws and know what you can and cannot deduct with the best tax return tips. If needed, make certain to go with a professional to make certain you get the all the deductions you deserve!
Faithful in your success!
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