Client Login     Seven Year-end Tax Tips for Home Based Businesses The more expenses you manage to get into your tax year, the lower your taxable income will be.  After researching home based businesses and pulling strategies from my existing client base, here are the top 7 items that you can do right now to help you this year.   1.  Stock up on demos or displays – Demo sets, display items or anything you use for presentations are 100% tax deductible as a necessary business expense.  If you need any additional demo or display sets, purchase them before the end of the year to receive a tax deduction this year.  However, according to the IRS they must be IN USE by the end of the year to be included in the current year deductions.  So, don't wait until December 31st to purchase them because it will be too late.   Do it now while you still have time to use them this year. 2.  Stock up on office supplies – Think ahead and purchase enough supplies to last a while.  You're going to use them anyway, plus it can help toward increasing your expenses for this year. 3.  Purchase any equipment you foresee needing in the not so distant future – Now may be the time to purchase that new printer or that new desk.  With your Section 179 deduction you can write off the entire amount in the year you purchase it instead of depreciating it over several years.  Make sure you put it IN USE by the end of the year to receive the deduction. 4.  Donate to charity – Donating to charity can help you in more ways than one.  Not only will you help the needy, but you may be able to significantly decrease your taxable income as well.  This also does not have to be money.  The list of items you can donate to charity is very long indeed.  The most common is clothing.  If you’re like most people, you have a closet full of tax deductions you don’t wear anymore.  You might want to think about making a trip to Goodwill before December 31st. 5.  Pay your kids to work for you - Yes, you can deduct what you pay your kids.  And, they won't have to pay tax on it if the amount is less than $3,400 for the year.  How old do they need to be?  I've heard of the IRS allowing children as young as 7 to earn money from their parent's business as a legitimate business expense. 6.  Take a business trip at the end of the year 7.  Pay your bills early - By paying your bills before the end of the year you'll most likely be able to deduct the expenses this year. Our Current Featured Service: Do you need a monthly accounting service?  We are currently offering a monthly tax and accounting service for only $125 per month.  This involves:   1.  Monthly Federal and State Payroll Tax Filings.  We will take care of all of this for you electronically.  All you will have to do is write yourself a check each month.  We provide you with the amount, you write the check, we take care of everything else. 2.  Federal and State Unemployment Tax Filings as necessary.  Most states require you to file quarterly and the IRS requires you to file annually.  3.  Quarterly Federal 941 Payroll Tax Returns.  We will set this up to file for you electronically every quarter. 4.  Monthlyy State Sales Tax Filings (if necessary). 5.  Annual Business License Application.  This needs to be filed with your local City Treasurer or Commissioner of Revenue.  We will assist you if necessary. 6.  Annual Business Personal Personal Property Tax.  This needs to be filed with your local City Treasurer or Commissioner of Revenue.  We will assist you if necessary. 7.  Print & Mail W-2's.  At the end of the year you'll need to give yourself and anyone working for you a W-2.  (If you remain a Sole-Proprietorship you won't need to give yourself a W-2). 8.  Print & Mail 1099's.  At the end of the year you'll need to send a 1099 to anyone you paid more than $600 during the year who is considered contract labor. 9.  We'll help you estimate your personal quarterly estimated taxes as well so you can avoid getting behind on your tax liability. All this for $125 per month.  Call us today at (757) 434-3089.            Tax Preparation Individual Taxes Small Business Home Based Business Network Marketing  Corporations Non-Profit Ministry Accounting Services Quickbooks Installation Quickbooks Support Full Charge Bookkeeping Weekly Financial Reports Monthly Financial Reports Quarterly Financial Reports Year-end Financial Reports   Financial Planning Personal Financial Plans Strategic Tax Plans Personal Financial Statements Budgets Ask the CPA Your Name E-mail Address Your Question     Copyright 2003 - 2007  Tim Yeager, CPA  All Rights Reserved.