It's almost tax time and we all have to file our taxes. Some of you would be dreading this time of the year because you may have to look for your paperwork, receipts, your earnings, and probably the previous year's tax return. Unless you run your home business as a corporation when you can choose which month do you want to end your year, it otherwise ends in December 31.
The only thing I could say is anything you spend that's incidental to running your business is deductible. However, any assets like furniture, computers, vehicles, and perhaps a portion of your house may need to be depreciated for several years. Furniture usually takes about 10-15 years, computers are usually 3 years, and vehicles are 5 years. Books and training you purchase may be deducted as an expense in its entirety, like the Magnetic Sponsoring book. How about leads that you purchase? They are deductible since they are incidental to running your business. Trips to convention (including hotels, rental cars, convention fee, and plane tickets) are deductible.
I'm sure there are many more, but if you don't know what you're doing, I highly recommend that you consult a certified public accountant (CPA). You want to focus on doing your business and don't let the tax blues hold you up. I recall the guy who played "Uncle Jesse" in the Dukes of Hazzard TV Show, the late-Denver Pyle, has hired an accountant to keep track of what comes in and out of his bank account and because of that, he was able to focus in his acting career. Thus, if you want to spend more time focusing in your business, just hire a CPA to free you with the worries.
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