Taxes are inevitable, and when you start your own business personal tax would seem much simpler than business tax. Furthermore, you’d be paying a lot more for business tax as compared to back when you were paying just personal income tax. And if you were already considering taking advantage of tax loopholes when you didn\’t have your business yet, you\’ll probably try your theories out when you see just how much tax you\’ll have to pay with your business. It\’s actually okay to see if there are loopholes in the form of applicable deductions, but never try any underhanded tactics that could get you more tax problems than savings.

Many people withhold information or leave out some details when filing their tax forms. This is definitely not a loophole-it\’s suicide. This is one way to ensure you get IRS problems. The taxman would definitely find out. If not immediately, in the future, and by then the IRS would have enough dirt on you to lock you up for a long time regardless of how good your Dallas tax attorney is. And it doesn\’t matter if it was unintentional. So before we move on, just remember to play it safe and stick to the rules.

If your business is online, as many businesses nowadays tend to be, then there\’s a definite way for you to take advantage of deductions you\’re eligible for while keeping to the rules of the game: declare that your business is run from your home. This would make you eligible for tax deductions concerning business expenditures. Because your business is run from home, a percentage of any home costs that can be associated with your business and its maintenance can be deducted from your overall taxes.

But again, to avoid trouble with the IRS, keep to the rules. Don\’t declare your business is run from your home when it actually isn\’t. Of course, there are some technicalities involved here. If you declare that your business is run completely from your home, then you have to clearly and accurately (and honestly) state just how \”completely\” you use your home office. And don\’t just say 100%–think about it. How much time for business do you actually spend in your home office? Do you use your office for business 100% of the time? Unlikely. It is smack in the middle of your home after all; Reflect on how much business time is spent on your office and then state the percentage that best estimates it. Say we stick to 75%. A fourth of the time you use your office for personal matters.

Now that that\’s settled, how exactly would claiming that majority of your business is run from home help you save on tax? Well, if the IRS accepts your stipulation, then a percentage of all associated home expenditures that affects your business would be deducted form your taxes. These include mortgage payments, rent, and even utility bills.

To illustrate this further, say for instance 20% of your home is allotted for your home office. That means you are eligible for 20% deductions on tax calculated from associated home expenditure. If you pay a mortgage of $500, then you are entitled to $100 deductions because of that. Paying $200 on utility bills? You get another $40 deduction for that. Accumulated deductions like these can save you a lot of taxes and save you from a lot of tax problems annually.

Seomul Evans is SEO consultant specializing in Attorney Marketing. Visit the sites to learn more about Dallas tax Attorney and Income Tax Attorney.

Seomul Evans is a SEO services Expert for
http://www.seo-1-marketing-services.com/
http://www.myirsteam.com/
http://www.dallas-irs-help.com/

Author Bio: Seomul Evans is SEO consultant specializing in Attorney Marketing. Visit the sites to learn more about Dallas tax Attorney and Income Tax Attorney.

Category: Legal
Keywords: Legal, Law, Lawyer, Attorney, Dallas, IRS, Tax, Business