Home-based businesses offer anyone interested the opportunity to make money on a full-time or part-time basis right from their home! But did you know that on top of making money, owning your own home-based business could SAVE you money as well? This benefit comes in the form of some pretty significant tax write-offs.
Most people have heard of tax write-offs and how large businesses use them, but don’t make the connection that small and home-based businesses are entitled to them too. For example, your home office and the rent or mortgage you pay on it is tax deductable. Even if you don’t have a full room dedicated to your home office, you can often measure the area that you work with in square feet and deduct that from your total home payment. Office supplies and office furniture from your home office can also be deducted.
A large part of a home-based business also includes travel and meetings with potential clients, and these are potential tax write-offs as well, even if those meetings are local! By keeping track of your gas and mileage on business-related trips, you are entitled to some money back at the end of the year. You can also write off business meals or entertainment if you take a client out to lunch or coffee, for example! Your tax professional can help you with all these tax benefits to your new home-based business and more.
The benefits of owning a home-based business are plentiful on their own; tax benefits are just the icing on the cake that helps eliminate the fear of putting in your own money into starting up a home-based business!