Spending money in your home business should always be a tax write off!

Spending money in your home business should always be a tax write off! Keeping records of your expenses and earning is crucial in business

Spending money in your home business should always be a tax write off!

As I contemplate putting my taxes together again I am stuck with weeding through hundreds of emails I have saved this year in an attempt to find receipts for stuff I bought and payments received or commissions I might have earned.

What you need to realize right away is that “Spending money in your home business should always be a tax write off.”

It really does not matter what you buy, as long as you are investing money into your business, you should be able to appy that towards your taxes.

I would highly suggest that if you did not keep records from last year, that you come up with a system of doing that this year and in the future.

I simply have a folder in my email accounts that I save any email relating to a purchase or profit so that I can be able to go through the mass much easier than having to go through every single email still in my account.

I will most likely go through them anyways, but wanted to share with you things that you should be presenting to the tax accountant working with you to make sure you get the most out of your business and are not paying taxes to the government when you should instead pay yourself first.

This is a suggested list from what I use in my business and should apply, though it is not an absolute list.  Be sure to check with a CPA, or cetified public accountant o verify based on your situation. (NOTE: An LLC might get taxed differently than a self proprietor for example so make sure you know you have the best arrangement for your business)

What you should keep records of as expenses for your business:

  • web hosting (monthly)
  • domain name purchases (yearly)
  • Autoresponder/webinar conference rooms (monthly)
  • Courses you have purchased for education
  • Conferences you have attended
  • Meals purchased at conferences
  • Hotel/car rental/Airplane tickets for conference
  • Miles Driven to a conference to to buy supplies
  • Stamps/Shipping/Postage
  • Stationary/Envelopes/packaging material/boxes to ship materials
  • Cell phone bills (most likely a percentage will be used here)
  • Home heating bills such as gas/electric
  • Internet service bill
  • Magazines/Books purchases in your niche for education
  • Membership fees and or assocition dues
  • Advertising online and offline
  • Sample products purchased to use as demonstations
  • Products sent out as samples to build business (may be considered as samples)

What you should keep records of as profits for your business:

  • Payments received from personal products sold
  • eBay sales
  • shipping fees received (if registered as separat through paypal etc.)
  • Commissions recieved through affiliate sales

As you can see, you need to make sure that you are keeping good records, especially if you want the government to see you as building a legitimate business and not someone trying to just funnel money into their bank account.

If you have any other suggested items to be aware of, or a tax horror story, please leave a comment below on your experience with business taxes.

The smarter you are with business taxes, the more money you are going to be able to keep for yourself.

Dave Gardner

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Daegan Smith and his IRS scavenger hunt

Daegan Smith shares a story about his IRS tax audit.

This is some scary stuff you don’t want to happen to you in you own a business:
I had to share this story Daegan Smith of “Maximum Leverage” Sent me.

learn more about Daegan here:
It’s one everyone needs to read, at least, that is, if you pay taxes.

“The Mythical $180k IRS Scavenger Hunt”
– Daegan Smith

Our story begins on …

April 15th of 2011 as our hero, a young
and energetic lad, reluctantly returns
to his native home in Washington DC from
a land far far away.

Not long after settling in he routinely
checks his mailbox and that’s where he
sees it for the first time.

His heart almost stops dead.

He feels all the blood rushing from his
head as the room begins to spin.

Before nature can take over he swiftly
moves to his couch and sits.

The only thought going through his head

“This can’t be.”

“I’ve done nothing wrong.”

“Why me?”

In his hand, he holds a letter from none
other than the most diabolical force in
the universe.

How had THEY found him?

Why had THEY targeted him?

He’d done nothing wrong.

As he looked down at letter from the
IRS, it read …

“Congratulations Mr. Smith! We’ve chosen
you to send us an extra $600,000. Please
send us a check my next Tuesday or
else.”

The epic battle begins.

It’s young Mr. Smith vs. the biggest
gangsters the world has ever known.

Not a fair fight for sure …

Realizing this …

The quick witted Mr. Smith decides to
even the odds.

He calls his money Merlin Jay.

Jay says …

“Clearly they’re trying to bully you. We
need to meet in person immediately. Fax
me what they sent you and meet me
tomorrow.”

The next day …

The young lad assigns his new wizard the
right to represent him in the epic
battle to come, but before the meeting
adjourns the money wizard Jay mentions

“You’ve got a LOT of work ahead of you.
You’ll need to enlist aid that you can
trust.”

The young lad thinks “Hmm …”

“I think she’s up for the task …”

The next day he had another warrior, a
new guardian, enlisted for the epic
brawl to come.

Over the next two months, and many back
and forth battles with his nemesis,
Adrianne proves to be his greatest
asset.

She forges all of the weapons and
shielding for the money wizard Jay to do
battle with the beast, And …

Each battle Jay returns alive and
optimistic.

Ready to fight another day.

Now …

Both sides are at stand still.

Our nemesis, the omnipresent,
oppressive, and always watching, IRS has
called out the battle ground.

The date: October 18th.

The terms: $180k in cancelled checks and
receipts.

Right now, as you read this, make no
mistake …

Our young hero, and his warriors
continue, the final $180 scavenger hunt.

Optimistic, fearless, and ready for …

The final showdown.

Will the young lad Mr. Smith slay the
behemoth?

Only time will tell, but our young hero
has been known to slay a few dragons in
the past. See him slay one here:

How Daegan Does it

Stay tuned for the epic conclusion …

To the top,

David Gardner
YourReviewGuru
=============
How To Make Money By
Simply Sharing This Lesson
=============

Would you like to share this valuable
lesson and create a new residual income
stream for free to boot? It’s a simple
as 1-2-3!

1. Join Daegan’s Maximum Leverage partner program here:

2. Use your partner link you’ll receive
after joining.

3. Post this lesson to your blog with
your partner link, load it as an email
to your autoresponder series, and send
it out as a broadcast article to your
subscribers.

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