Tax Benefits from your Business

Have you ever wondered how to get other people are able to get tax benefits?

Have you thought about how part of your house, phone and car can be a tax benefit?

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***Disclaimer***

This is some of the suggested items that can be a tax benefit but you need to talk to a Certified Public Accountant (CPA) in your state or area for all of the tax things you are allowed to claim for your business. You are liable for your taxes filed with the government. Boxed in Boxes is just giving you suggestions on what to check for in your state. *********

Car:

You might be able to claim a percentage of the following for your vehicle. You must keep a tracking log of mileage for all trips that are business related. From getting supplies to deliveries, all of these miles need to be accounted for.

1. Small notebook -I would suggest keeping a small notebook in the glovebox to track all of the mileage on the days used for business.

2. Keep track of all maintenance such as oil changes, tire rotations, or any type of maintenance. Use your small notebook to keep track of dates and what was done. Put your receipts in a safe place to give to tax preparer later.

Office ( home):

1. Office in you home must not have anything in it that suggests that it is used for anything but an office. Some tax preparers will tell you that a percentage can be taken on taxes if it solely an office for your business or business related expenditures.

2. Files: keep your files maintained to make it easier for the tax preparer. All receipts for your business need to be kept anyway, so why not in a filing system of some sort.

3. Some tax preparers will ask you, what do you pay for electricity and utilities monthly? Depending on your tax preparer, you might be able to claim a percentage of that on your taxes as well.

Phone: cell or landline

1. Keep track of your phone bills for the tax preparer. They might want to know the monthly average if you are using your personal phone for your business. They may ask how much time (percentage) is use for business.

Supplies:

To make it easier for your tax preparer: Keep a list of what you spent on supplies for your business. Make sure you keep itemized lists to make your time with your tax preparer go smoothly. Things to take into consideration that you would put on this list are just suggestions:

1. business cards

2. all supplies associated with your business - balloons, gift boxes, stuffies, etc

3. office supplies - pens, scissors, tape, filing folders, envelopes

4. advertising - if there is a cost associated with it)

5. business meetings (cost of the meal)

6. computer (percentage might be used for the business)

7. ???

Tax Preparer (CPA)

Cost of doing business with your tax person is also an expense that you can write off on your taxes.

****************These are only suggestions for you to consider. If you research it, you will find some of the same things I did. I also listen to my CPA (tax preparer) that I hired so that I can get the most tax deductions for my business. This person also keeps up on tax law so that I can maximize by deductions. Please contact a CPA in your area to see if you qualify for any or all deductions that you can get by law. Ask them questions so that you know what you need to do and what you need to provide for them to do the tax paperwork.*************************