Tax Tax And More Tax What A Bummer Heres How To Handle It

Tax,​ Tax And More Tax .​
What a​ Bummer! Here's How to​ Handle It.
When you​ run a​ business,​ it​ can feel like you​ spend far too much of​ your time worrying about tax .​
Here's a​ quick guide to​ the​ what you​ need to​ know about tax.
What Do you​ Qualify For?
There are all sorts of​ tax breaks for home and small businesses,​ to​ try and make it​ easier for them to​ survive .​
To qualify for them,​ though,​ you​ will need to​ be using your home as​ the​ primary place where you​ do business .​
If most of​ what you​ do takes place in​ some space elsewhere that you​ rent,​ then you​ won't qualify for home business tax rules .​
You also are unlikely to​ qualify if​ you​ haven't set aside a​ specific part of​ your home as​ the​ 'business area' .​
Be prepared for the​ fact that you​ might be audited,​ to​ make sure that you​ are running a​ legitimate business from your home.
Records you​ Need to​ Keep.
You need to​ keep records of​ everything -- literally everything -- you​ spend on​ your home business .​
You should especially keep records of​ things when their use might be shared between personal and business,​ such any business-related travel expenses you​ run up on​ your car .​
If you​ have stock,​ you​ need to​ go through and inventory it​ at​ least once a​ month.
What you​ Can Deduct from Your Home Expenses.
Because your home office is​ in​ your home,​ you​ can claim any tax back that you​ pay on​ that part of​ the​ home .​
You can also claim back tax on​ part of​ your utility bills .​
For example,​ if​ your home is​ 2,​000 square feet and you​ use 100 square feet for your home office,​ you​ can claim back 5% of​ your utilities .​
If you​ rent,​ then you​ can claim back this percentage of​ the​ rent,​ and if​ you​ have bought the​ house then you​ can claim it​ as​ a​ discount off your mortgage interest .​
Any equipment you​ have that depreciates (becomes worth less) because you​ use it​ in​ your business may also be eligible for a​ tax deduction.
Self-Employment Taxes.
When you​ work from home,​ you​ are legally self-employed .​
This can put you​ in​ a​ sticky situation,​ meaning that you​ have to​ pay for medical and other taxes that your employer would normally pay for you​ .​
In the​ US,​ for example,​ you​ will be responsible for your own social security and Medicare payments,​ while in​ the​ UK you​ will need to​ pay national insurance.
Get Tax Software.
If you're not sure where to​ begin,​ get some tax software .​
Choosing your circumstances from its lists and giving any additional information it​ asks for should show you​ most of​ the​ tax rules that apply to​ you.
Get an​ Accountant.
If you​ want to​ save as​ much as​ you​ can on​ your taxes,​ don't rely on​ things you​ read on​ the​ Internet,​ or​ even on​ computer software -- get an​ accountant .​
They'll be up-to-date with all the​ latest tax laws,​ and will know thousands of​ tips and tricks that there's no space to​ list here .​
See if​ you​ can find one who will take a​ percentage of​ what they save you​ in​ tax as​ payment instead of​ charging a​ flat fee -- this is​ an​ ideal solution for you​ and for them.
Do Your Taxes Online.
Most developed countries now give the​ option to​ do your taxes online,​ eliminating a​ big paperwork headache .​
You may even find that your tax software can send its tax report directly to​ the​ online service,​ without you​ doing much more than clicking a​ button .​
Of course,​ if​ you​ do things this way,​ be sure to​ call and confirm that everything went through alright.
Don't Be Late.
Whatever you​ do with your taxes,​ you​ absolutely must not file them late or​ pay them late .​
It's an​ all-too-easy trap to​ fall into,​ but there are automatic fines .​
Tax collection agencies will look upon you​ very unfavourably if​ you​ pay late,​ and are likely to​ start immediately charging interest on​ any money you​ owe them .​
Write your tax dates on​ your calendar and underline them in​ red .​
Twice.
Tax Tax And More Tax What A Bummer Heres How To Handle It Tax Tax And More Tax What A Bummer Heres How To Handle It Reviewed by Henda Yesti on July 03, 2018 Rating: 5

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