Archive for Tax Help

Well, that all depends. If you have insurance, you probably won’t use it. If you don’t have it, you’ll probably be sorry. Insurance is just one of those necessary evils. Keep the following points in mind when you consider whether or not you need home based business insurance.

First, will you be obtaining a business license of any kind? If so, you will need to check the licensing requirements. Some local governments require that you maintain a certain level of Liability insurance especially if people will be coming to your home during the course of your business. If your local government doesn’t require home based business insurance, then you must look at your individual situation and make that call. You may want to consult a licensed insurance agent to advise you of possible affordable options.

Will you keep an inventory in your home? In that case, you will want to insure it against a potential loss. Many homeowners’ insurance policies do not cover the loss of business supplies so check with your local insurance agent to find out the best option for your home based business insurance needs.

If you use your car consistently in your business, you will probably need to contact your auto insurance agent. Premiums usually increase when you drive your car for regular business use. One thing to keep in mind is that business use of a car is often tax deductible so this can help defray the added home based business insurance cost.

Many people run their businesses without any type of insurance, due to lack of knowledge. Starting a business is hard enough without risking the loss of all of your hard work because you didn’t invest in home based business insurance.

Contact your local CPA and Insurance to find a policy that will suit your needs. Trust me. It’ll be worth every penny and provide peace of mind

Well, that all depends. If you have insurance, you probably won’t use it. If you don’t have it, you’ll probably be sorry. Insurance is just one of those necessary evils. Keep the following points in mind when you consider whether or not you need home based business insurance.

First, will you be obtaining a business license of any kind? If so, you will need to check the licensing requirements. Some local governments require that you maintain a certain level of Liability insurance especially if people will be coming to your home during the course of your business. If your local government doesn’t require home based business insurance, then you must look at your individual situation and make that call. You may want to consult a licensed insurance agent to advise you of possible affordable options.

Will you keep an inventory in your home? In that case, you will want to insure it against a potential loss. Many homeowners’ insurance policies do not cover the loss of business supplies so check with your local insurance agent to find out the best option for your home based business insurance needs.

If you use your car consistently in your business, you will probably need to contact your auto insurance agent. Premiums usually increase when you drive your car for regular business use. One thing to keep in mind is that business use of a car is often tax deductible so this can help defray the added home based business insurance cost.

Many people run their businesses without any type of insurance, due to lack of knowledge. Starting a business is hard enough without risking the loss of all of your hard work because you didn’t invest in home based business insurance.

Contact your local CPA and Insurance Agent to find a policy that will suit your needs. Trust me. It’ll be worth every penny and provide peace of mind.

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Dec
06

Home Based Business Tax Advantages

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Tax Savings for Home Based Business

Tax Savings for Home Based Business

You already know how wonderful it can be to work from home, but do you realize how many home based business tax advantages exist?

Here in the United States, many people operate home based businesses just to take advantage of the numerous tax deductions.

Claiming the use of your home in your business can give you some hefty deductions on your tax return. As with anything tax-related, you must meet certain requirements determined by the Internal Revenue Service. However, if you use one room or part of a room specifically for your business, you can receive a significant home based business tax deduction. This can include portions of your utility bills specifically related to that area of your house as well as any relevant home improvements.

Your phone and other office services can also provide you with a substantial home based business tax deduction. If you maintain a separate fixed phone line or cell phone specifically for your business, then all costs related to those phone lines can be tax deductible. However, if you use equipment or services in both personal and business environments, it is more difficult to establish a tax deduction. It’s not impossible, but you must meet some fairly strict requirements and maintain good records.

Using your car in your business gives you the potential for another good home based business tax deduction. Of course, you must keep excellent records but you can deduct mileage and car-related expenses that you incur while conducting your business. With any type of business, other incidental costs come up. You can also take deductions for purchases of items such as office supplies, postage, advertising materials and expenses.

You can potentially deduct even more by hiring your children or spouse to work as employees for you. This enables you to deduct health insurance premiums and other typical employee-related expenses.

In order to find out about the many home based business tax deductions available to you, consult an experienced tax advisor.

With proper advice and good recordkeeping, your home based business can become even more successful.

If you live in the Minneapolis-St Paul Area call me at 952-212-6134 and I will give you an excellent referral to a highly qualified tax advisor.

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