I\’m sure you\’ve heard all the reasons for working for yourself.
You can set your own schedule. You can be your own boss. You won\’t have to commute. You can work in your underwear. (Does anyone ever do that?)
Yada yada.
All true, all wonderful (except maybe the underwear bit) and all good reasons for setting up your own business.
Bu there\’s one reason that no one ever talks about, and that\’s very strange because it\’s one of the most powerful.
Working for yourself, from home, can have a dramatic effect on your taxes.
That\’s not because you\’ll be earning less — there\’s no reason for that to happen. It\’s because many of your everyday expenses now become tax deductible.
Not all of your expenses are tax deductible, but anything that relates to your business can, at least in part, be taken off your profits, reducing your tax liability.
So as an online publisher, that\’s obviously going to include the cost of a new computer, your Internet connection, the price of your domains and server charges.
But if you drive to the computer store to buy a new mouse or pick up new printer ink, then part of your car costs will be deductible too.
If you take a family vacation in Vegas or Florida and happen to spend a day or two at a marketing conference, your trip\’s expenses will be deductible.
If you ask one of your children to help out with your site, their allowance can become a wage — and become tax deductible.
Even some of your electricity charges, mortgage payments and heating bills can be deductible.
Suddenly, every time you spend money, you\’re taking a little bit off your tax bill at the same time.
Clearly, it\’s not quite this simple. There are all sorts of conditions, limitations and other issues than will affect your tax deductions. Before you claim anything, it\’s always a good idea to speak to a tax professional. These things really aren\’t worth taking risks for.
But understand that becoming an online publisher and working from home can affect your income tax bill. If you do it right, it can make it a lot smaller.