Did you know that it is better to be self employed as you can have more tax deductions than employees can? You are able to write off a portion of your utilities, mortgage interest, home maintenance, home insurance, property taxes and vehicle expenses which regular employees cannot do.
So what if you technically have a home business because you are a consultant with a desk at home, but you’re really just purchasing from a direct sales company at a discount for yourself? Does that still qualify for tax deductions?
The Code of Conduct
- Run your business like a business
- Document your activities correctly
- Pursue a profit
If your hobby business follows these guidelines, then there won’t be any worries come tax time.
So if having a home business makes so much financial sense when tax time comes, why do most people not bother to have one? If people really understood the tremendous tax savings, I think more people would be intentional and find a direct selling or network marketing company with products they like and use and could recommend to friends and family. Taking advantage of the tax savings takes a little effort, but it is well worth it!
Why do people overpay taxes?
- They find it too time consuming
- They procrastinate and leave it all to the last minute, then feel overwhelmed
- They have either lost or faded receipts
- They don’t know the rules.
There are many great resources to help you with your taxes and lots of easy-to-use tax programs too. I’d love to hear what you use and find helpful. Leave me a message at facebook.com/publishedstorybooks