| One of the frequently over looked deductions is your | | | | form home that his or her office can be used as a tax |
| children. Many home-based business owners hire | | | | deduction. Likewise, your home where you live and |
| family members to fill available staff positions. An | | | | operate your business is a tax deduction. The costs of |
| advantage or tax benefit of hiring your children is that | | | | all equipment used to provide products or services to |
| they will have money to save for college and or their | | | | your clients are tax deductions. |
| own personal expenses. | | | | Home-based business operations use a portion of the |
| Young teens can work in family owned home-based | | | | business owner's home to exclusively operate their |
| business ventures by answering the phone, taking | | | | business. Where the entire home is not a deduction the |
| messages or orders. Typing, filling and answering | | | | space exclusive to the operation of the business is a |
| correspondence are duties that can generally be | | | | tax deduction. The proportionate amount of electricity, |
| carried out by a young teenager. Training is key no | | | | gas and other utilities used in the working portion of the |
| matter how old or young the staff member is. | | | | home are also allowable tax deductions. |
| Younger children, aged eight to ten, can help clean the | | | | How much of a tax deduction is generated by your |
| home-based business in exchange for pay instead of | | | | home-based business [ depends on how much of your |
| hiring a housekeeper or office maintenance services. | | | | home is used exclusively for business. An example |
| Their wage can often take the place of an allowance | | | | would be if your office takes up 50% of your home |
| and the home-based business owner is entitled to | | | | half of the expenses would be a tax deduction. Half |
| benefit by claiming payroll expenses. | | | | the mortgage payment, property taxes, utilities and half |
| If you decide to hire your children to work in your | | | | the cost of home improvement could be valuable |
| home-based business don't forget to document the | | | | deductions. Be sure you are consistent with the |
| time they work precisely as well the duties they | | | | percentage used to calculate each of your deductions. |
| perform. If possible pay your children with a check | | | | Always to keep track of your business and personal |
| from your business checking account. Your children | | | | expenses and save your receipts in their appropriate |
| should be encouraged to open a checking and saving | | | | folders. If you have provided training to employees, |
| account to deposit their check in. Start teaching your | | | | even if those employees are family members, training |
| children at an early age the value of saving and | | | | your employees and your self are viable deductions. |
| earning the money to buy the things they want. | | | | Consult a tax professional to gain tips for other |
| Home-based business owners can easily use their | | | | deductions and to get the maximum allowable |
| cancelled checks of their bank statements for record | | | | deduction. There are many legal ways to reduce your |
| keeping. | | | | tax liability, use them to your benefit. You worked hard |
| Another under utilized basic tax deduction for your | | | | for this income. Don't let the taxman take any more |
| home-based business is your home. It is obvious that if | | | | than necessary. |
| a business owner operates from a small office away | | | | |