Did you know that you could get back thousands of dollars from the IRS, just for having a home based business? Either that or you can save thousands of dollars on your income taxes. Take for instance, my friend Trisha. Her and her husband started a home based business. For the year of 2007, they were able to write off $60,000 on their income taxes. Now, I dont know about you but that sure would motivate me to start a home based business.
Lets talk about some of the tax breaks that you can receive when starting a home based business. Most of own a computer, a printer, a cell phone and an internet connection. Guess what? You can write all of this off.
Here is how it works. Say that you are using your computer, printer, cell phone and internet connection 75% of the time for your business and 25% of the time for your personal use. Then you can write off up to 75% of the cost of these items on your taxes. For example, if it cost you $3000 a year to have and use these items, you would take 75% of $3000 which would equal $2250. So you could use this $2250 as a deduction on your taxes.