Take A Vacation Tax Write Off
One of the best benefits of working from home is the tax write off strategies available to you.
When you work from home, you are working your business everywhere you go, so with careful planning you can maximize your direct selling tax deductions.
Taking a home office tax deduction based on a home business is not cheating on your taxes.
It is paying the taxes you are supposed to and also taking the deductions that you deserve.
When you conduct business everywhere you go and document those activities you are eligible to take the travel deductions.*
Take The Vacation Tax Write Off
I am on a ski vacation. I drove 370+ miles to get here.
With careful planning you can schedule a business trip every time you go on vacation and take some of the mileage and other expenses associated with the business stop as a business deduction.
When you schedule a business appointment along the way (which I did), then you can deduct the miles that it took to travel to that appointment from your taxes. In this situation that alone is a deduction of $75 that I do not have to pay taxes on.
It is a legitimate deduction. On top of the mileage consider the meals and entertainment and possibly the hotel for the night can offset my vacation costs tremendously.
In reverse when you have a business trip make sure you always schedule recreation as well. For example:
- When I present a speaking engagement in New Hampshire and I stay a couple extra days to ski. In this case all the travel, meals and hotel is 100 percent deductible.
- When I go to Florida on business, I also visit my sister. The meals and entertainment when hanging out with my sister is not taken as a deduction but all the transportation (airfare from PA to Florida) is.
When working a business from home you can make the same amount of income as you would in any other job but as a result of the many tax write off options available for home business owners you will end up with more disposable income.
Tax Write Offs = Recruiting Strategy
People do not like to lose money.
The tax write offs involved in working from home are an awesome way to share the opportunity.
Use the tax write off benefits of working from home as a recruiting tool.
The TaxRecruitingApp is a tool that allows you to plug in numbers for your friends and family so they can see exactly how much money they would save in taxes when working from home.
When you show them how much they are leaving on the table by giving money to the government, they will be more open to your home business opportunity.
Sharing with your family and friends how much they could save with even a small vacation write off will generate more interest than “starting a business” will.
Try leading with the tax savings in your next recruiting conversation and people will perk up!
*Deb is not a tax accountant and is not giving you tax advice. Always use an accountant who understands the direct sales industry.