You have heard it every where " I can't start a home business they cost to much" but in reality your part time or full time business could offer you tax benefits that your current line of work does not provide you. Your savings in taxes could actually get your business up and running.

Imagine being able to change some of your everyday expenses into tax deductible expenses, there by reducing your current taxable income. I would imagine that that would be a dream come true, because we all panic when it comes to tax time. I don't know about you but I don't like having to pay more at the end of the year...

Of course many of these tax deductions may depend on the state you live in so you really do need to consult an accountant. But you can certainly begin documenting everything as you go.

Here are a few tax benefits that are screaming out as a deduction:

• A percentage of your living expenses: You probably have an area designated for your office. Depending upon the amount of your mortgage or rent the percentage of the space used for your office may be deducted. Ex: Your mortgage is $1300 per month x 12 = 15600.00 and your office is 10%, your deduction could be $1560.00 for the year. From there you can deduct portions of your utility bill as well. Remember though, this must be well documented.
  
• Mileage: This one is always overlooked probably because it takes discipline in documentation. When delivering product or visiting a prospect or going to a meeting you must write down your beginning and ending mileage, where you went and the name of the person you met or the meeting title. By getting a simple mileage book this is easy because at present I believe the deduction is 55 cents per mile. I live a long ways from everything and believe me this adds up fast.
  
• Office expenses: This includes your internet, staples, paper for your copier or printer, ink for your printer, a portion of your telephone bill or cell phone, anything that you use in the course of the day. Again, you need to document the purchases and keep receipts.
  
• Education: Your business is your education. Anything that  you buy to grow your business is education. Books, continuity programs, e-books,seminars etc...
  
• Trips: Business trips or vacation/business trips. If you are on a family vacation but you are doing any business at all, you may deduct the expenses for the trip. This is huge.... Again keeping your receipts and documentation of who you met or hours put in are always helpful at the end of the year.
  

There are so many things to consider when you are opening and operating your new work from home business, and I know it looks just amazing but it needs to be documented. Bookkeeping and having a trust accountant is just as important to your business as the deductions are.

So as you are starting out or maybe you haven't been doing this, then now is the time. You can do your own through Quicken, Excel, or there are others programs designed specifically for a home business.

As the IRS is becoming increasingly more aware of home businesses of all kinds they will be looking at all of us a little bit closer. That's okay with me as long as I know I have all the documentation.

Don't wait till April 14 to start remembering things, do it all along and you will have a simple piece of paper to present to your accountant at the end of the year instead of a box of receipts.

Article written by Angela James

Angela is a retired business person after owning and operating a family business for 24 years. In her years of business Angela practiced the necessary accounting practices needed to be successful. Angela brings this expertise of business management with her to help you avoid the many pitfalls of business online or offline. Learn more by going to Internet Network Marketing Solutions.