Many Home-Based Businesses May be Missing Out on the Home Office Deduction

Many Home-Based Businesses May be Missing Out on the Home Office Deduction

Home Businesses in the News, an article review service from Home Biz for Retirees

Fox News published “Home Office can be a great tax deduction, if done right,” by Katie Jackson. She reports that many home-based business owners are not using this tax deduction for fear of triggering an audit.

Sherry Jackson, a former IRS agent, is the author of “Stick it to the IRS.” She advises home business owners to follow the rules with receipts to back up your expenses. She coaches people setting up their home-based business. “Everyone needs to check with his or her local government to find out if you need a license to operate your business from home.” The article provides more details with interviews from several experts.

Here is a snapshot of the article:

Screenshot 2016-04-20 12.39.08

 

Click here to read the entire article

The article also explains that the home office tax deduction is a high-risk option, even when you have the tax records to back it up. I put this in because Fox likes to be “Fair and Balanced.”

As reported on this blog previously, the new home office deduction recommended by the IRS is a safer method to use. Click here to review that article.

There you have it. A complete report you can read online with interviews from several experts on taking the home office deduction. The main point to remember is you should work with your tax professional to ensure the proper legal business set up is in compliance with the law. Then you must file the proper tax forms with the IRS. Seeking advice from your tax expert is strongly recommended.

Yes, taxes can be a swamp that sucks you into a morass of legal troubles. But the IRS itself encourages you to take the deductions to which you are entitled. You just need to follow the rules and seek counsel from experts in this area.

That’s not news, but it is reality.

 

 

 

IRS Reminds Home Business Owners of Simplified Home Office Deduction

 

The Illinois Business Daily filed a report on the Internal Revenue Service’s advice that home business owners should use the simplified method of claiming home office deduction for the business use of a home.

Since 2013, the optional simple deduction method for home office expenses will reduce the paperwork and record-keeping burden on small business owners. This deduction is capped at $1,500, and is based on $5 per square foot, for up to 300 square feet of home office space. All that is required is for the taxpayer to fill out a simple, short, worksheet to claim the deduction. It is a quick alternative to filing IRS Form 8829.

Business expenses such as advertising and supplies are still fully deductible with the simplified deduction method. Since the majority of home-based businesses do not file depreciation expenses, this simple method will reduce the tax burden on the taxpayer.

Here is a snapshot of the article:

 

Screenshot 2016-04-13 12.44.35

 

Click here for the link to the story.

There you have it. The IRS is reporting on a legitimate method to take the home-office deduction for the business use of your home. Reducing the record keeping requirements saves time by not having to process the lengthy IRS Form 8829. Therefore, you spend more time working your business and less time processing tax forms.

Now that is news Home Biz for Retirees can use.

Baking Treats is a Great Idea for a Home-Based Business

Baking Treats is a Great Idea for a Home-Based Business

 

Local home-based bakery offers specialty treats to Cleveland community

The Clarion Online reports that Kristen Goins, owner of Cupcakes and Gourmet Treats by Kristen, has been baking sweet treats in her home-based business for the past 18 months. She built her business using her Facebook page where people can order the baked goods. The key to her home bakery is personal home and office delivery service.

Her marketing efforts include offering a weekly giveaway, to attract new customers and keep her existing clients. It worked!

She really hit the sweet spot by offering a ten percent discount and free delivery to student dorms near her home. The college students love the sweet offering. Parents will call and order a “care package” of cookies and birthday cakes for their college students.

Kristen began her business by giving samples to local offices such as Regional Finance. Now she has orders ranging from 10 to 40 customers every week and she is able to run her business smoothly.

Here is a screenshot of the story:

Screenshot 2016-04-07 17.03.15

 

 

https://www.dropbox.com/s/5fb2110bf6m871u/Screenshot%202016-04-07%2017.03.15.png?dl=0

To read the full story, click here.

There you have it. This remarkable success story is a fine example of a person willing to take a chance and develop a home–based business. She kept her overhead to a minimum by working from home. She found a market for her treats and a way to reach her customers.

Way to go Kristen!

 

 

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