Are YOU Leaving Money on the Table?

Written by Elena Fawkner


Continued from page 1

Believe me when I tell you, if you're planning on taking business deductions, you'd better be able to prove torepparttar IRS that you have a genuine profit motive. How do you do that? By keeping proper books and records. By keeping business and personal expenses separate. By keeping business and personal income separate. By running a genuine business, in other words.

Here's how it works.

Let's say you have a spare room in your house that you use exclusively as a home office. Overrepparttar 106499 past 12 months, you've bought a computer, desk, chair, printer and fax machine. You've decided that you want to start a home- based online business onrepparttar 106500 side while you continue to work in your job. You spend several hours a day researching ideas for your new business and you spend a small fortune on your high-speed internet connection, and various information products relevant to your area of interest.

Because you're running a business, one ofrepparttar 106501 first things you're going to want to do is get a system for your business records set up.

Keep a record of all expenses as they're incurred so that when tax time comes around, everything is at your fingertips. I use Excel spreadsheets for this - one spreadsheet for every expense category. Here arerepparttar 106502 categories I use (use whatever categories make sense for your business though):

Advertising and promotion Software* Web Hosting and Domain Name Registration Fees ISP/Cable Modem Fees Office Expenses Content Subscription Fees Telephone*** Bank Charges Books and Magazines Equipment** Furniture** Bad Debts Home Office Deduction

* Usually has to be depreciated over several years unless it's software that needs to be updated frequently such as anti-virus software.

** You can either depreciate these items over time or you can write off 100% duringrepparttar 106503 year of acquisition up to a maximum of around $20,000.

*** If you only have one phone, you'll need to apportion expenses between personal and business. Onrepparttar 106504 other hand, if you have a second line exclusively for you business, you can write off 100% of expenses forrepparttar 106505 second line.

Every time I pay a business expense, I enterrepparttar 106506 details inrepparttar 106507 appropriate spreadsheet. Very easy.

Then, whenrepparttar 106508 time comes to file your tax return, you just need to prepare a Schedule C (for individual taxpayers). If your business makes a loss (i.e.,repparttar 106509 expenses you pay out are more thanrepparttar 106510 revenue you bring in from your business), that loss is deducted from your income from all sources, thereby reducing your taxes.

But, best of all, if you qualify forrepparttar 106511 home office deduction, you can take a proportionate share of your mortgage or rent payments and your utilities and apply them as a deduction against your business profits, but only torepparttar 106512 point whererepparttar 106513 profit from your business equals zero. In other words,repparttar 106514 home office deduction cannot be used to create a loss situation. But even if you can't deduct it this year (because your business has already made a loss), it's not lost. You can carry it forward to future years to be applied against future profits.

So, as you can see, even if you're only inrepparttar 106515 information- gathering/learning stage of your business, if you have a profit motive you're nonetheless in business and you can and should be writing off your business expenses even if you're yet to start generating revenues.

Make sure you keep proper records and substantiate all expenses though. The IRS is, of course, well aware ofrepparttar 106516 potential for abuse of home business tax deductions and will be paying close attention. That's fine though. If you have a profit motive, you ARE running a business and you're *entitled* to take any legitimate deductions that are available to you. To do anything less is to leave money onrepparttar 106517 table.

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** Reprinting of this article is welcome! ** This article may be freely reproduced provided that: (1) you includerepparttar 106518 following resource box; and (2) you only mail to a 100% opt-in list.

Here'srepparttar 106519 resource box to use if reprinting this article:

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Elena Fawkner is editor of A Home-Based Business Online ... practical business ideas, opportunities and solutions forrepparttar 106520 work-from-home entrepreneur. http://www.ahbbo.com Also, visit Elena's newest site, Web Work From Home http://www.web-work-from-home.com



Elena Fawkner is editor of A Home-Based Business Online ... practical business ideas, opportunities and solutions for the work-from-home entrepreneur. http://www.ahbbo.com Also, visit Elena's newest site, Web Work From Home http://www.web-work-from-home.com




Discover Hidden Profits in "Spare Change" Time

Written by Jim Edwards


Continued from page 1

Take this "one-day challenge".

Today, try these alternatives to sitting and watchingrepparttar "hourglass" on your monitor while waiting for your computer to finish a task!

~ Organize your desk ~ Sharpen your pencils ~ Make a quick phone call ~ Check your "to-do" list; if you don't have a "to-do" list make one ~ Write a fast note to a friend ~ Put in a load of laundry ~ Go torepparttar 106498 bathroom ~ Get another cup of coffee ~ Pay a bill ~ Catch up your checkbook entries ~ Pick up your office ~ Brainstorm an idea ~ Stand up and stretch ~ Day-dream for about a happy thought for 90 seconds!

Carefully watch how much time you spend in front ofrepparttar 106499 computer waiting for it to do something and then see how many things you can accomplish with that time.

Nothing could reward you more than developing a consciousness about how you spend those spare moments that add up to enough time to write a book, take a trip with your family or take positive actions that will change your life forever.

Use your "spare change" time to accomplishrepparttar 106500 things you claim you never find time to finish!

(c) Jim Edwards

============================== Are YOU a "Lazy Achiever"? "The Lazy Man's Guide to Online Business" How to Work Less, get Paid More and have tons more Fun! Proven tips, tricks, techniques and strategies of Superstar "Lazy Achievers"! Click=> http://www.getmoredonefaster.com ==============================

Jim Edwards is a syndicated newspaper columnist (http://www.TheNetReporter.com) and is the author of several best-selling ebooks. Jim is the co-author of the runaway best-seller, "33 Days To Online Profits" with Yanik Silver. Jim specializes in helping small, internet-based businesses find, use and profit from new and existing marketing and automation tools.


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