Posted by Alex Jackson on April 12, 2016
So its tax season and you’re worried about that extra money you brought in with your home business selling great liquidation merchandise from Fox Liquidation (apologies for the shameless plug). Don’t panic! Now is the time to dig into your files and start adding up those receipts. Not only is staring your own home based business profitable but there are many tax credits you can take advantage of.
Cost of goods sold- Merchandise is not free and that’s why if you are spending money on inventory you better be deducting your receipts from Fox Liquidation.
Utility expenses- Using your internet connection for more than YouTube like maybe selling some shoes or designer handbags? Don’t forget about the other utilities like electricity you can deduct a percentage of these costs for your home based business.
Office supplies- Packing materials and office supplies or perhaps you bought a new printer for labels a scanner or perhaps a new computer these are all deductible.
Home office deductions- Does your basement look like a warehouse or is that spare bedroom bursting with bikinis you have listed on eBay and Amazon? Then good there’s another deduction your square footage of office and storage space is also deductible.
Donations- You still have those three 2013 thanksgiving day parade shirts you got in your very first lot and are sick of looking at them? Good news you can donate these to any of your local charities for another deduction.
Travel- if you’re driving to the post office every day with bags full of packages then there’s another deduction keep track of those miles over the course of a year they can add up to a nice deduction.
Health Insurance- If you are self-employed and paying for your own health insurance then this is another great deduction that you cannot overlook.
Retirement Savings- If you are contributing to a Roth IRA, 401k or other type of retirement savings plan these contributions are all also deductible.
In short not only is your home based business a great source of additional income but also a great source of additional tax credits. So help keep more of your hard earned money where it belongs… in your pocket!!