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Most everyone has been pitched on the tax benefits and advantages to owning a home based business. The fact is that there are many tax tips that you should know when involved in MLM, but it should never be the sole reason to get involved in a network marketing business.
So what are some of these tax tips that people gloss over when talking about a home based business? Let’s start with your house. If you are running a MLM business out of your house, you must be using a portion of the house as an office or maybe a storage area for books, products or whatever else you may need to keep for your business. This means that you can break your house up into percentages, and let’s say 20% is used to run your business. Well then 20% of your home expenses has become an amount that you can use as an EXPENSE for your home based business. This expense can be directly applied against your income for that taxation year and therefore, bring your income down. This my friend, leads to less income tax to pay the government.
Does this make sense yet?
It works the same with your vehicle and the percentage of time you spend using your vehicle for your business. All those expenses can be applied against your income and so on and so forth!
The actual business expenses you incur through the business, like overhead, gas expense, travel expenses to a seminar perhaps? These are all legitimate expenses that you are legally able to claim against your income! If you were not use to saving your receipts…it’s time to start!
I am not an accountant, but I am married to one! That being said, I would still encourage you to seek your own accounting advice, just be sure they are up on the latest tax laws regarding home based businesses!
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