Tax Advantages of Your Home Based Business
Copyright Ali Brown http://alib.ws

Summary: I started this with the intent this would be a short
dissertation on some of the basic tips I have gathered over the
years for clients. It has grown into a rather lengthy document.
Therefore, in the interest of brevity in my blogs, I will put
the links I have for some good small business information for
both our Canadian and American partners here. If you’d like to
read the document in it’s entirety, please visit my
website @ http://alib.ws.

I want you to start thinking about your business as a
BUSINESS. Any and all of the expenses that you would incur
if your business were located out of your home still apply
(you simply pro-rate them with respect to the percentage of
your home you are using for your business). When you are
calculating these expenses, be sure to include the use of
common areas that would be used by your business as well.

You also think about your entertainment and vacation expenses
from a business perspective. Our businesses are based on
“networking”. If you are networking at your Sunday BBQ, this
becomes a business expense. Plan a vacation at the same time
and location as your primary’s convention.

A few Canadian references I am sure you will find useful
http://sbinfocanada.about.com/od/taxinfo/a/bizexpenseslist.
htm - reference information
http://www.cra-arc.gc.ca/E/pbg/tf/t2124/t2124-05e.pdf CCRA
Statement of Business Activities
http://www.cra-arc.gc.ca/E/pub/tg/t4002/t4002-05e.pdf CCRA
Publication: Business and Professional Income.

These are some equivalent US information I have been able to
locate.
http://www.irs.gov/pub/irs-pdf/p583.pdf IRS - Starting a
Business and Keeping Records
http://www.irs.gov/pub/irs-pdf/p587.pdf IRS - Business Use of
Home publication
http://www.irs.gov/pub/irs-pdf/f8829.pdf IRS - Business Use
of Home formhttp://www.irs.gov/pub/irs-pdf/i8829.pdf IRS -
Business Useof Home form instructions.

I write this with an obvious Canadian flavour - but my research
tells me the principles will stand true for our partners in the
United States as well. (For those of us who reside and build
our businesses in other countries, I can only suggest this may
give you a starting point for research into how each of your
countries applies taxation with respect to Small In Home Business)

By the nature of the beast, the Income Tax Laws are open to
interpretation, therefore, I cannot stress it strongly enough
that you must ensure you are not in contravention of any
legislation. In Canada we have tax avoidance law as well as tax
evasion law, if you are in doubt of any legitimate expenses you
must seek professional assistance. It is irresponsible to not do
so. Again, as your business grows you are going to contract out
these tasks, your time will be too valuable to be doing clerical
work.

About the Author:
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Simply knowing what you read in this article isn't enough. You
have to put it into action to be successful. To learn how you
can do exactly that – and to learn more about how Ali can help
you with your online marketing business, you will want to visit
her website at the following URL:
http://alib.ws
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Ali Brown is a friend and, I as well as many others look towards
her for help, guidance, and support. She is a very patient,
knowledgable, and very kind person who is always willing to share
her time to help others. If you ask Ali a question, she will find
you the answer. Thanks Ali for being you!

I am passionate about turning peoples Dreams Into Reality
Faye Brown