Thursday, February 8, 2007

Tax Advantages of the Home-Based Businesses

Owning and operating a home based business has many advantages and benefits over working at a regular 9-5 job. There is always the simple pleasure of just being at home in addition to the above average income the self employed usually bring in. One consideration that you may not have fully explored is the qualifying deductions you can make on your tax return.

Home Office Deduction

Your office at home and related expenses are allowed deductions according to IRS guidelines. To qualify, your home must be the primary place where your business is conducted. Additionally, the office space must be used exclusively for your business. It is best to have a room that is obviously equipped for business use only. Should a question arise, there must not be any doubt that the room is used for other purposes. Needless to say, keep the day bed in another room.Details of what qualifies as a home office and what can be deducted is explained more fully in various IRS publications found on their website at (Alexa)

Home Office Building Expenses

You can deduct home office improvements and repairs. So, if you were to paint your home office, it is considered an expense associated with conducting business from your home and it is deductible. You can also deduct mortgage interest as a percentage of the full mortgage paid on your home. Lets say if your home office takes up 100 square feet of your 1,000 square foot home, you could deduct up to 10% of the interest on your home mortgage as a business expense. This also applies to those who rent. Property taxes paid for your home also qualify at the same percentage rate as the mortgage. Home owners can also depreciate a percentage of the home over 39 years. Home expenses that are not related to your business cannot be deducted.


Using the same percentages, you can also write off utilities such as electrical, gas, etcetera.

Phones and Communications

The IRS considers the first phone line in your home to be personal. Additional lines for business use including a cell phone are tax deductible. Internet service fees are deductible as a percentage depending on its business use.


A percentage of the secured home area and its security costs are deductible as a business cost.

Moving Expenses

Form 8829 titled Expenses for the Business Use of Your Home is where you would claim moving expenses related to your business. Again, if 25% of your belongings were business items, that percentage can be written off as a business expense. Unfortunately, a C corporation cannot claim this deduction.


Any software that you purchase for business use can be deducted. You will probably be required to write off over a period of time programs that are over $500 in value though. Check with IRS guidelines for further information.


The premium you pay on your home owner's insurance is partially deductible. Any insurance that covers your business specifically can be deducted as a cost of doing business. An incurred loss not covered by insurance can be deducted fully or partially depending on its' use.

Tax Preparation Expenses

You might be able to deduct the cost of having your taxes prepared even though it may not be specifically about your home based business. Any software that you purchase to help you prepare your taxes for your business may also be deductible.

Retirement Account

Contributions to a self employed retirement account may also help reduce your tax liability. Inquire with a qualified specialist like a CPA to determine current laws regarding this special benefit.

Educational Expenses

Any monies spent on learning skills that are specific to your home business are usually tax deductible. If you purchase a course in gift basket making for example as a precept to starting your gift basket home business, that would be tax deductible.


You can write off transportation expenses related to your business. Traveling to and from a clients place of business, for example, would qualify. The IRS allowed 37.5 cents per mile for the 2004 tax year. You must keep detailed records though. A journal kept in your car with odometer readings should suffice.

Meals and Entertainment

If you entertain while conducting business even if it just over a meal it is deductible. While you can only deduct 50% of the cost of meals and entertainment, it is well worth keeping records. Additionally, you can deduct your meals if you are conducting business out of town. Please remember to stay within IRS guidelines to avoid awkward questions later.


Most home businesses do not take all the deductions that they are legally entitled to mainly because the idea of an audit is so fear invoking. Just stay within the IRS guidelines, keep receipts and accurate records. If you have any questions or doubts, call and ask the IRS. You can also consult with a tax preparer to help you discover, implement, and plan on what deductions you can legally take.

Remember, tax deductions are a way to foster the growth of your business. Take advantage of your legal right to legally minimize your tax liability, your home based business will be glad you did.

Wednesday, February 7, 2007

Katies Hugs

Katies Hugs

5 Things I Had To Learn On The Road To Self Employment

Going from over a decade of salaried work in a licensed profession where I had a clear role and status to full-time self-employment in a profession that is a bit like the Wild West was not without it’s challenges.

If you are an entrepreneur or considering making the leap, here are a few tips I can offer you from my own insights and dope slaps along the way.

1. Admit it when you need help and then ask for it.

2. Accept help and support without worrying that people will think you less of you.

3. Don’t overplan.

4. Develop work habits that bring out your best.

5. You don’t have to catch every ball thrown at you.

Tuesday, February 6, 2007


Simplx is definitely a scam! What kind of company charges $20 to tell you about thier product. They should be paying you!

Furthermore, Simplx claims to not be related to Zibus, another scam company. However, you will note that if you check the BBB report
you will see that Joshua Lee is an officer for Simplicity group which owns Simplx. He is also the CEO of Zibus which is the scam under a different name.

I called the two differnt numbers listed under BBB for Zibus and Simplicity Group. Guess what, they both ring at the same exact place! Simplicity801-491-4054 and Zibus 877 302 9542. When I confronted the girl about this she denied it at first. After I presented the evidence she said oh well "we do their back end work". NOW BEND OVER!!

You can check out another unhappy customer at this link.

Monday, February 5, 2007

Cash donald sorenson SCAM!

Earlier today, I received an e-mail from Donald Sorenson ( He wanted me to apply to be a "Transfer Manager" with his company,
I had posted a resume on and that is where he said he found my resume.
I immediately checked out their website, which looked halfway decent. Supposedly, the company is based out of the UK and they buy currency in bulk and then convert it at lower rates for their clients. I would be processing payments from the clients to the company. All I can say is SCAM, SCAM, SCAM! I believe there are many other variations of this scam out there. I checked out the web URL via and found out that the two website "" and "" are registered to an Anthony P. and an Alice G., both are Americans. One lives in New York and the other somewhere on the east coast. The company claims they are based out of the UK with a UK address and phone number. Both are bogus.
Their website is hosted by Yahoo servers.

The Internet is filled with work at home businesses that claim you can make money working at home easily and fast. Your local newspaper is plastered with advertisements for "getting rich quick". You turn on your radio to hear another testimonial of how a person who was in debt became a multi-millionaire entrepreneur overnight from a web-based business opportunity. You watch TV late at night and see more of the same.

The notion to make money online with a work at home bizopp starts to peek your interest. You decide, "Hey! It's time for me to find happiness and financial success working at home! Where do I find a good work at home business opportunity?"

The great news is that a legitimate work at home business can be very lucrative. Starting a work at home business can be the best life choice you have ever made. I know it was the best decision I ever made!

The challenge...finding the right work from home business opportunity - one that is legitimate, profitable and easy to start.

Before I started my work from home business opportunity venture, I decided that I was going to investigate several different work at home programs and companies to root out the legitimate business opportunities from the fraudulent ones. My findings shocked me, but I did find a solution. The solution has made me thousands of dollars in profits and has made me financially secure for the past 7 years.

My research included experimenting with hundreds of home business opportunities including: Internet affiliate programs, network marketing or MLM, work at home data entry jobs, paid survey opportunities, online auctions, online dollar stores, and more. I scoured the Internet to find as many business opportunities as possible. I joined, spent the money and gave the work from home based business opportunities a try. Wow! Did I waste a lot of money!

I was dismayed at the number of programs that had poor work at home business models, out-dated information, broken links on their website, almost no customer support, and no chance to ever make money online. But I did find a few that work and am proud to present them to you on my website.

These work at home businesses are not only legitimate, but may be extremely profitable. I found these sources by contacting many happy clients that will attest to the benefits of these opportunities. Testimonials for these work from home programs were not fabricated. They truly believe in the business opportunity they have chosen.

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