Every year, many people end up paying too much taxes without even realizing.
They do not take the advantage of the tax deductions that the federal government has given.
However, if you are running a home business, here are three deductions that you can take to save yourself thousands of dollars in taxes.
oMost expenses related to running your home business can be deducted from the taxable income.
You can deduct expenses like pens, paper, printer, ink, phone line, internet connection charges, utility expenses, gasoline used for business travel and even taking clients out for a meal.
However, you will need to keep meticulous records of all the expenses that you incur for your home business so that you can claim the deductions when filing your taxes.
oEquipment that you use for business can be claimed as a part of the deduction.
So, if you use a car solely for business, fax machine, computer, and even special uniforms can be deducted.
oYou can get a big tax deduction if you are using your home office to run your business.
However, if you are using the office for any other purpose besides running your business, you cannot claim this particular tax deduction.
It goes without saying that when running a home office, you need to maintain proper records and also keep all the receipts safely and in an organized manner.
You can create a simple filing system for each time of expenses so that you can refer to it when the need arises.
Alternatively, you can invest in a computer software to help make the recording keeping easier.