| If you are new to running an Internet home based | | | | costs for domain name and a hosting plan. Other |
| business or even if you are an experienced | | | | allowable items could be anything you have purchased |
| entrepreneur, it is crucial to understand that you must | | | | to maintain your business such as; copy machines, |
| file a tax return. Here are some tax tips and guidelines | | | | scanners, ink cartridges, office furniture and supplies. |
| to make filing your next tax return trouble-free: | | | | Advertising Expenses and Membership Fees |
| First and foremost you need an accounting ledger | | | | You can also deduct marketing and advertising |
| booklet. You can deduct the cost of your mileage and | | | | expenses as well as home business opportunity |
| the accounting ledger. Keep a mileage tracking sheet in | | | | affiliate membership fees. |
| your car and record all business related travel mileage. | | | | In conclusion, keep track of any money earned with |
| Keep Track of Household Utility Costs | | | | your Internet business. Income earned has to be |
| If you have a room in your home that is used only for | | | | reported to the IRS as well. Be sure you keep track of |
| your Internet business and nothing else, you will be able | | | | all your mileage, utilities, office supplies and income in |
| to deduct a portion of your utilities. Yes, that is correct, | | | | your accounting ledger. Do not be concerned about |
| home utilities such as gas, electricity and even garbage | | | | being audited by the IRS. If you have all supporting |
| pick-up are allowable tax deductions. It is critical to | | | | documents and filed properly on time, there is no |
| keep your payment receipts in your accounting ledger. | | | | reason for you to be audited. |
| Other Allowable Business Expenses | | | | If at any time you are not sure about something when |
| You will also be able to deduct payments to your | | | | filing your taxes, by all means, seek the services of a |
| Internet service provider. If you have a created a | | | | tax professional for your Internet home based |
| website that you paid for, you will be able to deduct | | | | business. |
