If you own a business and operate it out of your home, there are many ways that you are able to save when tax season rolls around. At Leskun & Son Accounting, we always strive to help those with whom we work to make the most out of their assets, which is why we offer our self-employed clients tax saving tips for home-based businesses.
Home-Based Business Tax Tips
As a business owner, you are eligible for a variety of tax breaks that should definitely be taken advantage of, and these opportunities expand even further when you operate your business out of your home. Some tips to keep in mind when thinking about your business’ taxes include:
1. Look into Using Bookkeeping Software
Bookkeeping and tax form software can greatly reduce headaches for business owners. There are many different programs available with varying levels of involvement and they will all help you to keep your financial records in order, reduce the number of mistakes you make, and help you to report any details that need to be reported. Even if you hire a bookkeeper, they will likely use advanced bookkeeping and tax software on your behalf.
2. Deduct Your Home Workspace
When you work out of your home, the amount of space that you use as a home office or workshop is deductible. Make sure that this gets entered into your tax forms, as this can provide a major deductible break.
3. Factor in Transportation
Just because you work from home, that does not mean that you might not travel for client meetings, seminars, or any other business-related activity. Any time that you use your car or any other method of transit for work, the expenses are deductible. This can include money spent on gas, travel fares, maintenance, and even the cost of the vehicle.
4. Track Your Expenses
Any time that you spend money on behalf of your business, track it. Keep receipts from business lunches, supplies, inventory, and even furnishings for your home office space, as these expenses can be deductible.
To find out more tax saving tips for home-based businesses, or to get started with any of our financial services for self-employed individuals and business owners, please contact Leskun & Son Accounting at 1-877-826-1219 or fill out a contact form on our website.