Self-Employment Tax Benefits
Written by Mike on May 13, 2008 – 12:29 am -Are you one of the millions of people who would love to leave their day job and become self-employed? Demanding bosses, long commutes, low compensation and time away from the family are some of the major “negative factors” that fuel the dream of self-employment. Tax benefits however is one of the major benefits of starting your own business.
I started my first business over eight years ago. The small student loan business ran from a folding table in my kitchen didn’t produce enough expenses/deductions to really take advantage of the tax benefits of owning my own business. My CPA kept telling me I was better off taking the minimum deductions than itemizing. As time when by, and several business ventures came and went, I finally started reaping tax benefits of owning my own business.
These days, I write off everything from an automobile lease to the part of my home I use for my home office. Yes, you can even legitimately write-off travel and entertainment expenses. I’ve even started deliberately making business contact in cities that I like to travel to for fun.
One last piece of advise…you can push the boundaries of what you deduct, but keep GREAT records. Organize your receipts and keep accurate mileage logs. It’s better to have then and not need them than the alternative.
Tags: Self-Employment, Taxes
Posted in Self-Employment, Taxes |