One of the frequently over looked deductions is your children.
Many home-based business owners hire family members to fill available staff positions.
An advantage or tax benefit of hiring your children is that they will have money to save for college and or their own personal expenses.
Young teens can work in family owned home-based business ventures by answering the phone, taking messages or orders.
Typing, filling and answering correspondence are duties that can generally be carried out by a young teenager.
Training is key no matter how old or young the staff member is.
Younger children, aged eight to ten, can help clean the home-based business in exchange for pay instead of hiring a housekeeper or office maintenance services.
Their wage can often take the place of an allowance and the home-based business owner is entitled to benefit by claiming payroll expenses.
If you decide to hire your children to work in your home-based business don't forget to document the time they work precisely as well the duties they perform.
If possible pay your children with a check from your business checking account.
Your children should be encouraged to open a checking and saving account to deposit their check in.
Start teaching your children at an early age the value of saving and earning the money to buy the things they want.
Home-based business owners can easily use their cancelled checks of their bank statements for record keeping.
Another under utilized basic tax deduction for your home-based business is your home.
It is obvious that if a business owner operates from a small office away form home that his or her office can be used as a tax deduction.
Likewise, your home where you live and operate your business is a tax deduction.
The costs of all equipment used to provide products or services to your clients are tax deductions.
Home-based business operations use a portion of the business owner's home to exclusively operate their business.
Where the entire home is not a deduction the space exclusive to the operation of the business is a tax deduction.
The proportionate amount of electricity, gas and other utilities used in the working portion of the home are also allowable tax deductions.
How much of a tax deduction is generated by your home-based business [http://www.
casfinancialgroup.
com?t=art04] depends on how much of your home is used exclusively for business.
An example would be if your office takes up 50% of your home half of the expenses would be a tax deduction.
Half the mortgage payment, property taxes, utilities and half the cost of home improvement could be valuable deductions.
Be sure you are consistent with the percentage used to calculate each of your deductions.
Always to keep track of your business and personal expenses and save your receipts in their appropriate folders.
If you have provided training to employees, even if those employees are family members, training your employees and your self are viable deductions.
Consult a tax professional to gain tips for other deductions and to get the maximum allowable deduction.
There are many legal ways to reduce your tax liability, use them to your benefit.
You worked hard for this income.
Don't let the taxman take any more than necessary.