Editor's Notes

Welcome Everyone To My IBiz Weekly!!

 Hi Everyone,

Well as you can see, I am back to html, but I decided to just link to the issues online instead of attempting to beat the spam filters in the email.

Today's issue is all about taxes. I still know tons of people who operate daily online without a business license. While this is fine for hobby sites, it is a must for any true entrepreneur. And that also means you have to pay taxes as a business owner.

I think it gets scary and confusing for a lot of people who think that will owe the IRS thousands of dollars and then they don't understand how simple it can be.

Please note I am not a tax expert but as someone who started my business two years ago, I am finally getting used to keeping records for my business.

I have included in this issue a  great article on Tax tips for all home based businesses along with collection of links that I have for you to help you with your taxes this year.

The next issue which is due out on January 26th will also have more great tax information to help you get through this tax season with a clear head.

Have a great week, and stay safe.

Donesia Muhammad
Ezine Ad Helper.com

A Word From Our Top Sponsor

Tax Help for The Self Employed

By Donesia Muhammad


It's that dreaded time again. Tax season. For some of us, we
yell Woo Hoo, because that means refund time. For others,
time to count your pennies.

Do you know some of the tax sites out there? Do you know
what you can deduct? Can you claim the home office
deduction?
 

For those of you who don't know, if you are trying to
electronically file your taxes, the IRS will not accept any
electronically filed taxes until Friday January 16th, 2004.

So don't waste your time looking for a loophole to do your
taxes any earlier than this unless of course if you plan not
to file electronically.


DID YOU KNOW??

Your advertising for your business is tax deductible.

Did you purchase any equipment or furniture for your business, you can deduct that expense.

Did you purchase any office supplies (ink, paper, subscribe
to any business publications) ? You can deduct this
information as well.


Have web hosting, list hosting fees?? That is deductible as well.

Here is the IRS tax schedule (column on the right) for this year so you know exactly when everything is due so you don't have to wait until the last minute to say " I didn't know this?"

The key word to remember for this year and the years to follow is Keep Receipts. Keep track of everything. Don't wait until the IRS is sending you a notice about an audit.


Below is a list of resources that you can find online to help you with your taxes.

Online Resources and Guides

IRS (Internal Revenue Site)
http://www.irs.gov

Here is where you start. Before you go anywhere else, hear it from the horses' mouth first. Forms, EIN's, you name it, find the answer here.



United States Small Business Administration
http://sba.gov/

Business Law.gov
http://www.businesslaw.gov/
Legal and Regulatory Information For America's Small Business


Checklist for Preparing Your Income Tax
http://www.turbotax.com/articles/ChecklistforPreparingYourIncomeTaxReturn.html
 

Rules For Taking The Home Office Deduction
http://www.quicken.com/cms/viewers/article/taxes/54902

Small businesses benefit from Section 179 deduction
http://taxes.yahoo.com/tips/income/sec179.html


Beginner's Guide to Self Employment Taxes
http://taxes.about.com/cs/payingyourtaxes/a/beginnerguide.htm

Desktop Publishing and Taxes (6 Part Article)
http://desktoppub.about.com/library/weekly/aa981023.htm



World Wide Web Tax Directory
http://www.wwwebtax.com/

Here you’ll find IRS forms, IRS instructions, IRS
publications, tax tables, rate schedules, charts,
worksheets, and answers to practically every IRS and tax
question imaginable in our Master Index of tax topics. We
have tips on how to survive the IRS! Strategies on how to
avoid an IRS audit.


IRS Guide for the Self Employed
http://www.irs.gov/businesses/small/index.html


 

 
Next issue, look for more help for you taxes and your small business..........

Hot Off the Presses!

From Michael Green.....




What's the #1 biggest problem for most internet marketers?

Answer: TIME MANAGEMENT!

As someone who has put together 14 different online
toolkits, I know all about the importance of "Managing My
Time". But when I reveal that I only run my 'How To' online
business ONE-DAY-A-WEEK (and that includes building new
products) - you'll understand that Time Management is REALLY
my thing.




The format is a Talking eBook called:
<<< How To Manage Your Time >>>

and it's subtitled...

"12 Powerful Rules That EVERY Successful
Internet Entrepreneur Should Follow!"

Download it Free here http://www.HowToManageYourTime.com/donesiamuhammad




 

Tax Tips for Home-Based Business Owners

© 2003 Vishal P. Rao

As tax time approaches, many home-based business owners begin completing their forms or paying their accountants with trepidation. This nervousness comes from two sources: a fear of being audited and a fear of having to pay a lot. For the most part, both of these fears are unfounded.

For one, audits are rare. In fact, only 0.5% of taxpayers are subjected to audits every year. And if you do beat the odds, keeping good records and maintaining receipts will help you weather the IRS storm.

Obviously you have not control over whether or not your return is chosen for an audit, but you can control how much you are going to owe the government this year. Most people who own small or home-based businesses end up paying more than they should in taxes simply because they are not taking advantage of all their deduction possibilities, even those that are right around them every day.

Your Automobile

You may not realize it, but one of your biggest potential tax savers is sitting in your garage right now. Most people realize that their car can be a tax write-off if it is used for advertising purposes, but the majority of home-based business owners don't realize that it they may also be eligible for deductions as well.

For example, if you drive your car to the post office to buy stamps for your business or if you drive to the office supply store to stock up on paper clips, you can claim that mileage on your taxes. You can even claim the mileage if your business-related stop was made on the way to picking your daughter up from ballet class or dropping your dog off at the vet.

In addition, you can write-off other automobile related expenses such as gas, insurance, and parking costs if they pertain to any business related activity.

Be sure to keep records, however. You will want to have a small notebook in your car at all times so you can jot down your start and stop mileage as well as a note about the business activity in which you are engaged. Keep all gas, parking, and insurance receipts as well if you plan to claim
those as business expenses.

Your Family

If you pay your children an allowance, you can also count these as deductions if you hire them as part of your staff. Any business owner knows that the money he or she pays to employees does not count as part of their profit. The same is true for home-based businesses.

Most business owners also know they can find employees among their own family without raising any eyebrows. The same is true for home-based businesses. You can hire your fourteen year old to help you answer phones, file, or type up correspondence. You can offer your eight year old a job emptying wastebaskets, straightening your office, etc. Then you pay them a certain amount of money every week for their labor.

Again keeping records is essential. Keep track of the hours your children work for you as well as the activities they do. Pay them, if possible, by check from your business account. You can set up a checking or savings account for the children in which the money can be deposited.

Your Home

Obviously if you worked in a small office building you could deduct the amount of rent you paid for that property from your taxes, as well as the costs of all the equipment and expenses. Well, just because you work out of your home that does not mean you lose out on those deductions.

Chances are you have a small area of your home that is set aside for your business purposes. Now while you cannot write-off the cost of your entire house, you can write-off the cost of that area.

What you do is determine what percentage of your home's total square feet is dedicated to your business. For example, if your office takes up 10% of your home's total area and you pay $600 per month for the property, you can claim $60 per month as a business expense which would be $720 per year.

The same formula works for your utilities, such as electricity, water, and telephone (unless you have a separate line just for business). All of your equipment - your computer, printer, scanner, cell phone, printer ink, etc - is also tax deductible.

Remember to keep track of those expenses and hold on to your receipts in order to claim them on your taxes.

When it comes to tax time, no home-based business owner needs to feel afraid. By taking advantage of all your potential deductions and keeping thorough records, you can not only significantly reduce your yearly tax bill, but you can also prepare yourself in the rare event you may be chosen for an audit.



Vishal P. Rao is the editor of Home Based Business Opportunities - A website dedicated to opportunities, ideas and resources to help you start a home based business. Visit him at: http://www.home-based-business-opportunities.com 
 

<<< SUCCEED ONLINE NEWS >>>

Don't Miss Out! on the Best News for any Marketer...
Learn from Timely, Informative and Result Oriented
Articles... The Latest and Greatest Marketing Strategies,
Tools and Resources, Tips & Advice... AND it's FR E!
http://www.succeedonlinenews.biz




<<< CUTTING EDGE MLM NEWS >>>

Remember how it felt, when you where building your Network
without the Secrets? Now, you don’t have to feel that way !
Shorten your Journey to MLM with Cutting Edge MLM.
MLM Secrets Exposed with Cutting Edge MLM News.
Get your Free Cutting Edge MLM Newsletter
+ your Free Ebook MLMSECRETSEXPOSED
Go to http://tinyurl.com/ion0