While it is not time to file your taxes yet, there are a few things that you can do before the end of the year in order to make sure that your home – based business generates you as much of a refund as possible when you do file within the coming months. There are some tax benefits that are usually always available to small and home – based businesses as well as a few that may not be around after tax year 2011 unless legislation is passed which will extend them. Here are a couple of deductions that might be applicable to your business.
The last thing that you probably want to hear about right now is shopping. However, there is possibly one credit card in your wallet that did not get a major workout this holiday season. If you normally use a business credit card to buy the things that your business needs, this is the perfect time of year to buy some of the things that your business will need for the coming year. Right now (meaning possibly not in the future) you can deduct the full cost of most capital equipment – durable things like computers, furniture, machinery, and the like – in the tax year that you make the purchase.
Retirement planning is tough in a down economy, but if you can fund an IRA or max out your contribution to an IRA that you have already set up, there is a tax deduction for that. If you do not have an IRA, make 2012 the year that you learn about retirement planning. It is important to understand at least the basics, even if you are in a financial rough patch and think that you can not possibly save a penny towards retirement at this time. You could be inspired to find a way to find those pennies (and dollars) to save or at the very least be prepared to know when you can start saving and how to get it set up.
Please be advised that the information that I have shared with you today is just for your information. I am not a tax professional, just a home – based professional who files taxes on a couple of home – based businesses. If you have questions about these tax deductions or other tax matters regarding your home – based business, I would advise you to consult with a tax professional. Oh, and if you happen to have known about all of the tips in this post before reading it today and you are very detail oriented, you may be interested in knowing that many tax professionals are home – based professionals. If you are interested in educating yourself so that you are qualified to help individuals and/or small and home – based businesses with their taxes you just might have found the home – based business opportunity that you were waiting for.
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