Finally, ultimate part of your Homebased Business Tax Plan: Do you have a personal income tax preparer. And no, H&R Block simply does not qualify here (sorry, H&R, this is my opinion, based upon a lifetime of stories and experience.). If you do, you’re home free, and if not….

Perhaps most complicated part, now run through your mind all people you know. There’s a very good chance that you actually know a “Tax Accountant.” Wouldn’t that be nice? But if you don’t, you are going to need to find one --- or spend time to become one yourself.

You can try yellow pages or white pages, but I’d suggest you contact everyone you know and take it from there. Surely at least one of your many friends or acquaintances will use services of a private tax person. Success --- or --- success. If you find one, well and good, and if you don’t then you begin your networking career by networking to find a tax man. Once you have him or her, you are now ready for all slings, arrows and pitfalls Internal Revenue can send your way.

Just work your Homebased business, begin making money hand over fist and you’re laughing all way to bank.

The same goes for your gasoline, insurance, depreciation and repairs and maintenance write-offs. You must keep accurate records of mileage. Your start mileage, destination(s), people contacted or business conducted, and finish mileage. Then, at end of year, you need to compute what percentage of your automobile use (based upon business and total mileage) was business. That is percentage of total automobile expenses you are able to write off.

For telephone you have a different situation altogether. You must get a business line. This can be accomplished one of two ways. Either by a cell phone or by a second phone line installed. There are several arguments for both but most telling one is convenience of cell phone. With a separate “business phone” you are able to write off entire expense.

But with cell phone you must keep track of all personal calls. The advantage of cell phone is that you have it with you and can advise your clients that you are on way, running late because, etc. And keep in touch with your home base while you are out and pick up any messages which may have been left at your home number.

This applies, also, to your home. You are allowed to write off all home expenses in amount that your business office at home is a percentage of your total home space. So if your home is 2000 sq. ft., and your office is 200 sq. ft., you may write off 10 percent of your total household expenses. This includes rent or mortgage payment and all utilities.

If you keep your meticulous records, take your “working vacation” every year and “do your business” all time, you stand to save from $1000 to $2500 on your income taxes every year, for at least first 5 years.

If you can start your business for under $1000, and keep your business going for under $1000 a year, you are in a plus situation where your business is actually making you a profit --- even though it is technically a loss --- every year for at least first five years.