AllSolutionsNetwork - Taxes

*Note: The following is not to be construed as legal advice. But rather, a general overview of tax advantages that are often available but missed.

1. HOME. Your home (whether you own or rent), is usually your place of business. Are you using your living room to hold business meetings; do you have a spare room for an office or supplies? Do you make coffee for your clients? Do you have a place in the home that you store your tools of trade? Since you are allowed tax deductions for the upkeep of your place of business, you are allowed deductions for maintaining your place of residence.
* 1. If you own your own home, you have the right to depreciate a percentage of the home's total square footage depending on the percentage of your home that is used exclusively for your business.
* 2. If you rent, you are paying not only for living quarters, but for rental on your place of business, as well. You may therefore be entitled to write off a substantial portion of your monthly rent as a business expense. Example: You rent your home for $1500 per month, assume one third of your home is used exclusively for business means that 33% of it or $500 per month could be tax deductible. 300 x 12 = $3600 allowable income tax deduction.
2. AUTO. Any driving which takes you to or from any place in which you have performed or intended to perform some action or actions which in some way directly effects your business, is allowed as a mileage deduction.

Let's say the allowable mileage deduction for the year of filing is 57.5 cents per mile. (this figure is accurate for tax year 2015) If during the year you drove 10,000 business miles, your allowable mileage deduction would be 10,000 mi. x 57.5 cents = $5,750, that is taken right off the top of your taxable income. What's this mean?
It means your refund is larger or your liability is smaller!

Some examples of allowable mileage deductions:
a. Driving to and/or from a meeting with customers or partners. (Your spouse, is usually your partner).
b. Driving any place in which you will attempt to meet new customers.
(parties or other gatherings).
d. Any driving done in which you will subsequently attempt to make
retail sales, deliver merchandise or meet new possible customers.
Another option is to lease a car for your business purposes. If this is done, virtually every cent invested into the auto will be tax deductible. (monthly payments, repairs, etc. )

3. BUSINESS MEALS- even alcohol! Any time that you dine in any restaurant or other such establishment, it can be considered a business meal and therefore tax deductible if you were networking for new customers or associates or in the company of a prospective or current customer or business associate (If an "active" ASN member, your spouse is a business associate); and if during the course of the meal, some aspect of the business was discussed the said meals and refreshments are deductible. Do you spend time at nightclubs, trying to sponsor new members??? Keep the receipts! This also deductible.

4. NORMAL UTILITIES Do you have utilities, electricity, gas, house phone, cell phones, internet access, etc. They are important to your business so if you use a portion of your home for business purposes, they are deductible.