Income Tax Deductions
Did you know that, through income tax deductions, you will receive guaranteed passive income simply by owning a home-based business?
The Tax Laws require that you operate your home-based business with a reasonable expectation of generating profits. But the Tax Authorities will allow you a few years to attain that result. Meanwhile, many of the expenses you already have can be deducted from your taxable income, thus decreasing the amount you owe the Government on April 30th (or increasing your tax return, as the case may be).
Here are several common deductions almost anyone can claim, and how to calculate if it is worth the investment of starting a home-based business.
In different proportions, you can claim your mortgage or rent, home insurance, all vehicle-related expenses, some business trip-related expenses, computers, Internet service, electricity, phone, office supplies, interest on credit used for the business, bank fees on business account, registration fees (REQ), and business trainings, just to name a few.
To decide if it is worth it for you to start a home-based business, simply make a list of all the deductions you would be allowed to claim, calculate the amount for each depending on the percentage, and compare it with the total yearly cost of owning and operating the home-based business you chose.
As an example, you can use the investment described on this page of our website.
Statistics show that, for most people, having a home-based business generates a worthwhile financial advantage.
For more in depth and detailed information, Phoenix Alliance offers a FREE specialized «Income Tax for the Home-Based Business» seminar to its registered members.
Interesting outside link: «Tax breaks for the home office crowd»
