Advantages for Working at Home

Today, I will talk about some of the advantages of owning a home-based business.

1. Tax Deductions:

One of the biggest advantages of owning a business (home-based or commercial) is the ability to deduct expenses from your earned revenue. Here are just a few.

*You can write off certain portions of your home. For example, let's say you have a
2,000 square foot home. You have an office that is used primarily for your
business and it is 100 square feet. You can write off that portion of your home.
(NOTE: There are restrictions and rules for writing off parts of your home as a
business expense. Check with your accountant to find out what requirements
must be met.)

* You can write off some utility and telephone expenses. Let's say you have an
internet connection from your cable/phone company. You can write off a portion
of those expenses. You use half for business purposes and half for personal
reasons. You can write off half of the bill. The same is true for your telephone
expenses. Although, you probably should have a separate phone line for your
business. In that case, you can write the entire amount off. Portions of your
electric, water and gas bills can also be written off. You will need to prorate
the costs and write off only the percentage used in your business. Again, please
check with your accountant to find out exactly what requirements must be met.

2. Money Savings:

* Working from home will save you a lot of money on overhead expenses. Here are a
few of the savings.

A) No rent payment and property tax that you would pay for a commercial location.
B) Allowable tax deductions.
C) Automobile gas savings. If you don't have to drive to your office, you won't
spend money on gasoline.
D) Business Insurance. In most cases, your business insurance costs will likely
be less than what you would pay in a retail/commercial location, especially
if you live in a safe neighborhood.
E) Food Savings. Since you are in your own house and you have a kitchen at
your disposal, you can prepare your lunch at home, instead of going out
for lunch at restaurants.
F) Car Mileage Deductions. Now that you own your own business (home-based or
commercial), you can write off every mile you travel that is business related.
Keep a mileage log, so you can tally up your miles for the year and write
them off your taxes. Plus, the IRS wants you to keep a mileage log, in case
you are ever audited.

These are just some of the huge advantages of owning your own home-based business. Many apply to commercial locations as well, but you will certainly save a lot of money on expenses, by working your business for home. The rent payment alone is enough of a reason to run the business from home. Not to mention, you won't have to sign a long-term lease with a leasing company, that you would be required to do, in a commercial location. You also will save a lot of money on start up costs, by working from home.

That concludes today's post. Keep checking this blog frequently, as I will continue to give you more tips and advice. Owning a business is a big responsibility and it should not be taken lightly. However, it is much better to work for yourself, than to work for someone else, so the rewards can be very high as well!

I have spoken with a lot of my friends, family members, business associates and others and it seems like everyone is running short on money these days. Even worse, some have lost their jobs and/or businesses and are having a hard time finding another job.

This economy is rough and many people are hurting. Since I have been operating home-based businesses for over 10 years, I felt I could give some advice to those who are searching for a way to earn extra money, part-time or full-time.

I have been asked about any legitimate home-based opportunities that are out there and I found a few that are worthwhile. You can learn more about them by clicking on their banner ads listed in the blog. I certainly cannot guarantee that any of these businesses will work for you, but I can tell you they are legitimate and you can earn money from them, if you are willing to do some work.

Take a moment and click on any of the banner ads to view the information each company has posted. Then you can decide if any are right for you.

I hope this was helpful and if you would like to share any information with my readers, please feel free to post a response. Everyone would appreciate any advice or knowledge you could share with us, regarding other legit work from home businesses.

Thank you.

Joe Anderson
Home-Based Business Entrepreneur