Easy Tips for Smooth Taxation for Home Based Business Owners

Are you running a business from your home are looking for how to work on business tax return? Are you excited to start crossing off your resolutions? Then this is the right place where you can get the best solution for all of your queries. It is essential to know the kind of tax return you are going to file based on your business. Taxpayers who run their business from home or outside their home must be aware of the tax return to claim the rights. Getting tax return is far easy when you are following the basic structure to get the tax return on time.

There is a very little difference between the home-based and the business located outside the home. And that is the deduction of the cost from the calculated space provided in your business. Every company needs to have a space for running it including online store as well. Space required for it is a legitimate business expense which you can deduce from the business tax return.

A small entrepreneur needs to file his tax deduction from home on Form 8829. In this article, we have provided detailed information and some important tips for smooth taxation for your home-based business, which are as follow:

1. Fill the Form 8829 Carefully

It is one of the simplified options which you need to fill nicely. While loading it, you need to calculate all of your legitimate business expenses. In addition to the number of different charges that are often being made for the business purposes, you must know the calculation for the total amount of space used from your home, internet bill, office room decorations and much more. If you aren’t aware of such calculations, you should consult a professional who can guide you properly.

2. Deduct Various Home Utilities Very Carefully

If you are running your business from home, you are allowed to deduct the portion of your utility bills such as your electricity bill, internet bill, phone bill etc. Other home utility charges you can add are mortgage interest, home insurance, sewer, trash etc.

You can also add the charges for the space which you are using as your office space. You can get the charges per square feet of your home office.

3. Deduce Stationary Costs from Your Tax

Being a home-based entrepreneur you also have some expenses as done by office entrepreneurs such as stationary. You can’t forget to add the costs made on paper, ink toner, postage, paper clips and various other expenses to your tax deduction. If you are using a new computer or iPad, you can deduce their charges as well from the payments.

4. Introduce All of the Payments That Is Needed to Upgrade Your Home Office

Home-based business owners are also free to add charges spend on a new desk, office chair, bookcase, desk lamps and other furniture as well. It means that you can use these charges as the expenditure for setting up your home business and hence also use in tax deduction.

5. Deduce All the Charges Spent on Business Trips Travels

If you are supposed to pay some amount on transportation to meet your clients, you can add them to your list of the tax deduction. You can add charges such as flight booking, train reservation, bus reservation, parking charges, and tools to this list.

6. Deduce the Charges of Lunches with the Clients

Being a home-based entrepreneur if you are going for a lunch meeting, you can add these charges to your business expenses. Just add money spend on local coffee houses, public transport you used to meet the clients and any other such spending to the list.

7. Deduce Health Insurance

Health insurance is one of the most critical factors whose value you can deduce from the principal tax payments. You are free to infer the cost of health insurance for the business holder and their family as well. You can also choose the employer-subsidized plan for your tax deduction.

8. Use Tax-Deferring Retirement Plan

Most of us always look forward to the tax deferring retirement plans which can save a lot of our hard-earned money. Various taxpayers who have a tight cash flow are very eager to know about the multiple methods for a tax deduction. If you are among them, then tax deferring retirement plan is one of the best options to go along. It is the best way to lower your taxes. Just choose a method as per your convenience and lower down the amount of taxes you are paying down.


When comes to paying tax return, it’s always good to consult a tax specialist to know the complete details regarding your tax issues. It’s your responsibility and rights to claim the tax return benefits on time. So try to know all the legal statements which support on your way to reach the destination.

Tax Laws for a Home-Based Business

Your home-based business is in a unique tax situation. It’s important to realize that if you conduct your business from home, you can deduct all the same expenses other businesses can. Moreover, you can access further deductions that will mean lower taxes you pay on your business income. Add to that the deductions of a home office and you’re really looking to lower taxes. However, be aware that calculating these deductions can be slightly different.

Direct Business Expenses
Any expenses that are directly related to the running of your business are deductible regardless of where your business is located. This includes home-based businesses. This means office supplies, raw materials, product samples, entertainment, and meals can all be included in your deductions. Be sure to keep your receipts for business related expenses so you can back up your deduction claims. Your expenses should be reported on Schedule C of the 1040 return form.

If you find that you have more expenses than revenue, you are able to claim the net loss against other sources of income or carry it forward for future years.

Home Office Deductions
If your business is located in your home, you will be able to claim some expenses of your home operations as a business expense. The IRS allows a home office deduction if you meet one of the following two criteria:

  • The home office is your main place of business, or
  • You regularly and consistently receive clients there.

This means that if you do not rent or own office space somewhere else, your home office is your main place of business. To meet the second criterion, you can have an office outside your home, but you see clients often in your home office. An example would be a lawyer who regularly meets clients in his home office in the evenings.

Calculating a Home Office Deduction
To figure your home office deduction, calculate the percentage of your home devoted to your office. This can be done in two ways. In the first manner, divide the square footage of the home office by the total livable square footage of the house. The second manner is to divide the number of rooms taken up exclusively by the home office by the number of rooms in the house. Be sure to calculate both ways and then choose the one that gives you the biggest percentage. Then, apply this percentage to home expenses, such as mortgage interest, utilities, property taxes, repairs, and maintenance. Apply the percentage to home expenses on the Schedule C form and this becomes your deduction. If your home office expenses create a net business loss, there are rules about which ones can be deducted and which must be carried forward in the future.

Vehicle Expenses
If you drive your personal car for business, you are allowed to deduct a portion of vehicle expenses against your business income. This is similar to businesses which deduct vehicle expenses. However, having a home office means the calculations are different. With a home office, you can include driving to and from your home for business purposes in your mileage calculation. You can also include driving between your home and another office. To calculate the appropriate deductible vehicle expenses, you can choose one of two methods. You may either multiply the IRS mileage rate ($0.55 at the time of writing) by the total miles you drove throughout the year for business or accumulate all your actual car expenses and apply the percentage of business miles versus total miles driven during the year.

Problems with Free Press Release Service

You may think that free press release services seem like a very easy public relations tactic. However, did you know that most PR and SEO experts recommend being extremely leery of them or better yet, avoiding them? While everyone may think that free press release distribution websites offer great result, a paid news distribution service offers far better search results compared to free press release services.

The concept of a free press release website that gets traffic and gets a one-way link are two the main reasons why webmasters, business owners, and some SEO professionals recommended using this service. However, this concept can also be a real head-scratcher to most PR professionals simply because it basically removes “reaching the media” from the real equation. The truth is,one-way links to your website actually came from a deep-linked webpage on the website of the free press release service, and not the homepage.


So what exactly is Free in Free Press Release?

Believe it or not, there are sites that promote themselves as free and offers too little for nothing. Most of the time, they post the release on their site and sometimes for a limited time only. But they do not distribute the news to media outlets. They might invite visitors to pay additional money to “publish” or “upgrade” for added services such as live links. And then there are websites that merely rub the advertisements which link to other press release websites. It can be tempting to try, however; this isn’t recommended especially for distribution.

What you only get for a press release service is actually the free traffic. An average press release can yield results of almost 100 visitors to your site. Not bad for a free press release distribution. Not until you realize that most of that traffic is not actually a potential customer. Rather, most of your visitors are website owners looking at their own press release on the website.


Why Getting a Paid Press Release Service Better than Opting for Free Press Release?

Getting a paid press release service has greater credibility to search engines and journalists because it gets your company news directly in front of the real and actual journalists. Thus results in placement in broadcasts outlets, print, and online news outlets. It could also look expensive yet the advantage is well worth it.

Aside from distributing your press release to different online news sites, databases, portals, and search engines paid press release services to send your news to different websites that are devoted to specific industries.


Why is a Press Release Still Important?

While most so-called experts suggest that press releases are no longer needed or worthless, one cannot deny the fact that press releases still has importance to businesses and companies alike.

Most of the major publicities such as those in top-tier media outlets don’t actually originate from press releases. Rather, it is the result of the customized pitch specifically aimed for the media outlet. However, the journalists who cover the business’ story as well as the consumers who visit your website typically expect to find press releases there. The result is there is no need to hunt for information about your news. And posting press releases online will ensure that it is part of the record.

When writing a press release about your new product, new business or events you’re hosting, you only want the widest exposure possible. And a press release is one great way to ensure you’ll have the largest publicity for your news.