You are the proud owner of your first home business. No office rentals, no fees to pay, just you and your business in the comfort of your home. Sadly, though, some people don’t realize that besides the obvious benefits, there are a myriad of business expenses right under your nose that can offer you incredible tax savings. Here, we will educate you on home business tax deductions.
Try a product idea that came from your own thoughts or passion. If you are making items or are passionate about them, they will be easier for you to sell. Making a product to sell is easier because you stand behind it and believe in it, since you made it.
Diversify your home business until you find what will make you the most income. If you are a landscaper in the summer, offer leaf raking and snow blowing services when your summer work is over. If you’re an English tutor, offer editing or transcribing services to local businesses. You may find you love doing the new services even more than your original offerings, and they could pay better!
Give incentives to your customers for referring their friends to your business. Word of mouth is the most powerful way of advertising because the recommendation of a friend is always more reliable than any flyer that you can send. Incentives also encourage your existing customers to remain loyal to you.
If your home business has a website (which it should), host a contest to drive traffic to your website and build interest in your products. Better yet, if you can structure your contest to get input on future products, you’ll harvest valuable information to build products later on and expand your business.
As we have shown, your potential home business tax deductions can be incredible. From home office square footage, phone lines, internet usage to business automobiles. The tax breaks are endless. Talk to your tax consultant to get a list of potential deductions. The savings will be worth the effort!