Tax Tips For The Online Marketer
The hardest part is just getting started, once you get organized everything will just fall into place
. Don't make tax time a nightmare.
Keeping good records, verifying every entry is the key to successfully claiming all the home-based business deductions to which you are entitled. If you have recently started an Internet or home business, your probably a little intimidated by having to submit a tax return and the possibilities of being audited. If you follow these suggestions you can be rest assured that your next tax return will be smooth.
Get some kind of an accounting ledger booklet. To be really simple create an excel spreadsheet and label two columns expense and income.
Franchise Expenses: Be sure to claim any monthly affiliate costs.
Internet Access & Phone Bills: Are you using a special phone line or have internet in your home or office that you are using for business, then save all those monthly bills. These items are business expenses and may also be written off.
Long Distance Calls: Making long distance calls for business is also a deduction, make sure you keep the phone bill with the amounts charged. Any call related to work may also be deducted.
Business Supplies: Save all receipts from supplies used for your business. Any items such as paper, ink cartridges, folders, business cards that you purchased and use for your biz.
Computers: The cost of a new computer for your business may also be claimed. You may also claim depreciation for 3 years after the computer was purchased.
Postage: Postage and shipping fees are often forgotten and should be claimed.
Advertising: You can claim most advertising on your taxes. If you run any ads in newspaper or online, make sure you keep those receipts. A major business expense is advertising and can be written of.
Labor Expenses: All salaries that have been paid to friends, children or others for work done are a deductable expense. Make sure that payments are reasonable to avoid any problems in case you are audited.
Utilities: If you have an office where you conduct your business you will be able to deduct some of the utilities expenses. I especially like this because I have to have these things anyway with or without the internet business and now they are tax deductible. Allowable deductions range from garbage pick up, long distance calls, electricity and gas. Keep all payments, receipts on a spreadsheet or in the accounting ledger.
Entertainment Expenses: Several times a year take out a potential client for dinner - and be sure to deduct it. Keep track of your dinner expenses, including tips...this is all deductible also.
Car Expenses: Keep track of your mileage, keep a spreadsheet in the car and anytime you are using it for work, write it down.
Education: If you attend conventions, conferences, trade shows, any software costs, web or journal subscriptions may all be claimed.
Travel: The percentage and eligibility of deduction depends on whether your trip was deemed to be business-related exclusively (100 per cent) or partially (50 per cent). To be safe keep all receipts and review with your tax advisor.
Income: Don't forget to also keep track of any income that you have made from your business.
To summarize, be sure that you can veriy all your deductions by keeping records of paystubs and bills. Just in case you are audited, you will be organized and ready. Now you just need to total each category at year end and take all your information to your tax preparer.
It takes time to become successful, don't give up, hard work will reward you in the end.
Copyright (c) 2010 Kathy Pleasance
by: Kathy Pleasance
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