4 Tax Deductions Your Home Business Can’t Afford to Miss

It’s that time again – small business owners in the U.S. are eagerly (or anxiously?) preparing for the impending tax deadline on April 15, 2011. Who am I kidding? Many self-employed sisters just want to get through tax season unscathed. No one is ever very happy about paying the infamous self-employment tax. However, the government does provide the self-employed with certain tax breaks that could help ease the burden a bit. Here are a few deductions every home business owner should be aware of:

Supporting Items

You’ve been keeping up with the receipts you accumulated during 2010 when making purchases for your business, right? If you bought a new laptop, printer, software, attended a special conference – even paying to have someone prepare you taxes is deductible.

Asset Deductions

According to Section 179 of the IRS Code, small businesses are allowed to take what is known as a deprecation deduction for business equipment purchases made within a year instead of waiting for an item to depreciate over a longer period of time. This can end up being a real money saver.

Mileage

Do you sometimes travel to meet with customers/clients, attend industry-related meetings/events or for other work-related errands? Keep a log carefully detailing the date, destination starting and ending mileage for each trip – even if you’re using a personal vehicle.

Sadaqa (Charity)

Have you made charitable donations on behalf of your business? Deductions for business donations can lower both federal and state taxes.

Muslimahs Working at Home was created to provide women with a financial alternative to earning an income outside of the home. Our objective is to share resources and tools needed to operate a successful, home-based business.