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Internet
Business Tax Tips
By Rebecca Gilbert
http://www.101homebusiness.org
If you have recently started an Internet business, your probably
a little intimidated by having to submit a tax return and the
possibilities of being audited. Simply follow these
guidelines and rest assured that filing your next tax return will go
smoothly.
Get yourself an accounting ledger
booklet
The first thing that you need to do at the beginning of every
year is purchase yourself a accounting ledger booklet. These
can be found at your local office supply store and can be found for
under $10. You can deduct your millage and the accounting
legder also.
Keep a millage tracking sheet in your
car
Each year I make myself a simple spreadsheet that I keep in the
glove compartment of my car. Each time that I need to get
office supplies, or I go to the post office to mail flyers, I write
my beginning and ending millage down on the spreadsheet. At
the end of the year, I just transfer the millage over to my
accounting ledger.
Keep track of your Utilities
If you have a room in your home that is used only for your
internet business and nothing else, you will be able to deduct a
portion of your utilities. I especially like this because I
have to have these things anyway with or without the internet
business and now they are tax deductible. Everything from gas,
electricity, long distance and garbage pick-up are allowable
deductions. Be sure that you keep your payment receipts in
your accounting ledger.
Other Business Expenses
You will also be able to deduct any payments to your internet
service provider. If you have a website you will be able to
deduct your domain name and hosting plan expenses. Other
deductable items could be anything you have purchased to maintain
your business such as: fax machines, copy machines, scanners,
ink cartridges, desks, chairs, phones, pencils, paper, etc.
Advertising / Membership Fees
If you pay for advertising or your internet business has a
membership fee, these expenses can be deducted also.
Labor Expenses
Many home business owners pay members of their family to help
with the home business. Be sure to keep track of the wages
that were paid to employees or family members.
Entertainment Expenses
I don't have too much to deduct in this category, but several
times a year I will meet a potential client over dinner. Keep
track of your dinner expenses, including tips...this is all
deductable also.
Income
In addition to all your deductable expenses, you will also need
to keep track of any money that you make with your internet
business.
In closing, simply keep track of all your millage, utilities,
office supplies, labor and income in your accounting ledger.
Be sure to attach a copy of your receipts. Total up each
category at the end of the year and take the entire booklet into
your tax preparer.
You will find that having an internet business can be hassle free
at tax time if you have taken the time to keep track of your
expenditures and income.
Best wishes for your future success and prosperity!
Sincerely,
Rebecca Gilbert
http://www.101homebusiness.org
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Rebecca Gilbert is the owner of a successful internet business
located at: http://www.101homebusiness.org
For more tips and articles written by Rebecca, please
visit: http://www.101homebusiness.org/home_based_business_articles.html
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