For any individual your largest expense are your taxes. One of the best ways to pay less tax honestly is to have a home business. When you are only being paid by wages and salaries you virtually have no tax deductions. If you have a legitimate business you can take advantage of a wealth of tax deductions which can reduce your taxes by $5,000 to $15,000 or more per year.

Here are 7 strategies that you can take advantage of if you have a home business.

(I am not a tax accountant. Before using any of these strategies please seek the advice of your tax accountant.)

1) HOME OFFICE DEDUCTIONS – For a while there was talk that taking home office deductions raised a red flag. As long as your business is legitimate and you designate an area for your home office you are okay. With that you can deduct expenses that you incur in the course of doing business. You can deduct office furniture like file cabinets, desks, office decorating and even office cleaning. You can also deduct rent, utilities, insurance, property taxes, supplies, phones, and repairs made to the office area of your home.

2) EDUCATION – You and your employees of your home based business can deduct 100% of the cost of any education they receive up to $5,200.

3) AUTOMOBILE – You can deduct your mileage when traveling for your home based business. Keep a log of your mileage and what you vehicle was being used for.

4) TRAVEL AND VACATIONS – You can deduct the majority of any trip if you can link it to your business. The catch is you have to be doing business on the first and last day of your trip. Keep all receipts and document what you are doing for business.

5) ENTERTAINMENT AND MEALS – You can deduct any 50% of meals that are being used for your business. Whether it is entertaining a prospect or making a sales presentation. If you have a business party at your home, you can deduct the entire cost of the party. Make sure the party is for a business purpose and document it well.

6) MEDICAL REIMBURSEMENT PLAN – You can deduct 100% of medical expenses, even some of those that are normally not covered by some traditional medical plans. These include chiropractic care, vitamins, supplements, deductibles and co-payments.

7) BUSINESS GIFTS – You can deduct business gifts up to $25 per person each year. If you are giving a gift to a business and do not designate who the gift is for, there is no limit.

You need to properly document your business expenses from your personal expenses. If you are using credit cards you either get a card in your business name or designate one card for business purposes only.

My best advice for any person is to find a qualified tax strategist and make sure you are taking advantage of all the deductions that are possible for you and your business. My guess is that you are going to be pleasantly surprised at how much money having a home business will save you in paying your taxes.

Author Bio: Mark Nelson is one of the top online Network Marketing and MLM Coaches. Mark mentors on relationship marketing, appreciation marketing, social media, and using traditional prospecting techniques. If you are looking to create massive growth, duplication, and success, visit Mark’s MLM Boot Camp now.

Category: Business
Keywords: home based business, tax deductions, tax strategy, entrepreneur, network marketing, mlm business