By: Melinda Orth
InspiringMoms.com

When you think about a home based business, you think of earning an income from the comfort of your own home.

Have you ever stopped to think how a home based business can save you more money on your income taxes?

Well, it's true!

For example, if you start a home based business and your spouse works outside the home, you can increase your tax deductions by increasing their tax exemptions so you get more money on pay day!

By having a home based business, there are many things you can deduct, such as, advertising expenses.

This means if you pay to place ads, have business cards, flyers, websites or any type of advertising you can use as a tax deduction. Supplies, paper, ink, pens, catalogs, postage, mileage, etc. can also be deducted. For the mileage you use to go to the office supply store is a tax deduction!

If you have a separate room in your house that is just used for the business you can use it for a tax deduction too. It doesn't even have to be a separate room, if you have space in your house that is ONLY used for your business.

Your phone expenses, this is a little tricky, because you cannot claim your local calls but you can claim your long distance expenses. The reason you can claim your long distance expenses is because you have an itemized bill for proof of the calls you make for business.

If you have a second phone line put into your space for your business, you can deduct the cost of the second phone line. If you are paying for a toll free phone number for your business then it's deductible too. If you purchase office furniture for use in your home office this can be depreciated over a period of time.

I have mentioned some of the benefits of having a home based business to show you the potential to earn more and save money too! I like saving money don't you?

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© Copyright 2003 All Rights Reserved Melinda Orth is a mother and making a living online. Visit her website: www.InspiringMoms.com
"Inspiring Moms to Work @ Home". If you are interested in learning how you can make more and save more money by having a home based business, please visit: www.InspiringMoms.com

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