Want to make the most of your tax season? As an online seller and business owner you want to save the most money when it comes to tax time. Every dollar counts towards you doing what you love another day. If you’re not taking all your tax deductions, then you may end up paying more than you really should have to Uncle Sam.
But taxes can be confusing, frustrating and downright painful. So Outright is here to help you by detailing the lucrative tax deductions many online sellers forget to take.
Need some help pinpointing which deductions to take? That’s why we’re here! Let’s get to it!
Small business owners all over the world get antsy about taking this tax deduction. It’s clouded in mystery and rumors swirl that taking it will lead to an audit. Basically, the home office deduction just means that if you use a dedicated portion of your home as an office, you can deduct the money you pay in rent/mortgage, utilities, etc. for that space. So if your house is 2,000 square feet and your office is 200 square feet, then you can deduct 10% of your expenses related to your home office on your taxes.
They key here is that you use the area exclusively as an office (or storage area). If it’s your home office AND the kid’s playroom, it doesn’t count and the IRS could ding you.
To claim this extremely useful deduction, you simply need to have a dedicated office space in your home. This doesn’t mean you need a door with a plaque and a secretary to hold your calls, just a space that is solely used for office matters. It can even be a closet if that’s where you work, just as long as it’s a dedicated space.
Check out this article for more details on taking the home office deduction.
Do you do any traveling for your online business? Even if you work out of the home you more than likely do some driving to do certain tasks for your company. These could include trips to the post office, a drive across town to grab craft materials, or even a weekend jaunt to attend a craft fair.
This is another deduction online sellers commonly miss, but think about it – one trip by itself may not seem like that big of a deal, but over the course of a year it really packs a punch.
There are two ways to deduct your mileage: “Standard Mileage” or “Actual Expense.” Check out this article for more on the mileage deduction and which type is right for you.
Tax time can be frustrating, but don’t let that frustration leave you poorer than it should! And if you have any more questions about taxes, be sure to check out Outright’s Tax Resource Center.
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