Welcome Network Marketers, MLM associates and home-based business owners. Take a few minutes to read through this valuable material and learn yet another benefit of being a Network Marketer.
For all you savvy Network Marketers, MLM'ers and home based business owners, you will want to continue through this short article to learn about more deductions that you are entitled to take.
Remember, when you are a business owner, and all Network Marketers are business owners, when you begin pulling in the good money you want to hold onto as much of it as possible.
And that is where the IRS home business tax deductions come in. These deductions are out there for the taking so lets take advantage of them.
Home Office Deductions are an enormous benefit of working out of your home. The biggest obstacle with this particular deduction is being prepared to show how you use your home for your business, should you ever have the lovely experience of being audited.
Lets assume that you, the network marketer, do qualify for this type of deduction. You can deduct a portion of expenses related to your entire home.
Here are several examples of such deductions:
- mortgage payments
- mortgage insurance
- mortgage interest
- real estate taxes
- utility bills
- home repairs
- painting
And here are some other guidelines to adhere to:
The particular portion or "space" that you are using in your home for
- your MLM business must be used regularly and exclusively for business.
- as a MLM owner, you must use the "space" for administrative or management activities of your Network Marketing Business.
- you cannot have another fixed location for your business where you conduct substantial administrative or management activities.
Generally, the amount you can deduct depends on the percentage of your home that you used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.
The following is a great example of when you cannot use space in your home as a business deduction:
An attorney uses the den in his home to write legal briefs or prepare clients' tax returns. The family also uses the den for recreation. The den is not used exclusively in the attorney's profession, so a business deduction cannot be claimed for its use.
Network Marketers need to use Form 8829 to figure your home office deduction and report those deductions on line 30 of Schedule C, Form 1040.
For more information see IRS Publication 587, Business Use of Your Home.
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I, Jane Ellen, accept full responsibility for the content of this article. If you have any questions regarding anything in this article, feel free to contact me via my website or phone. 440.942.8166
http://www.FreeMLMsuccessReport.com
Jane Ellen has an extensive background in the home-based business industry as well as public marketing. She is most well known for her no-nonsense approach to marketing and teaching style. She knows that the only thing she cannot create more of is time - so she won't waste yours.
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