Internet Home Based Business – Filing Your Tax Return

If you are new to running an Internet home based business or even if you are an experienced entrepreneur, it is crucial to understand that you must file a tax return. Here are some tax tips and guidelines to make filing your next tax return trouble-free:First and foremost you need an accounting ledger booklet. You can deduct the cost of your mileage and the accounting ledger. Keep a mileage tracking sheet in your car and record all business related travel mileage.Keep Track of Household Utility CostsIf you have a room in your home that is used only for your Internet business and nothing else, you will be able to deduct a portion of your utilities. Yes, that is correct, home utilities such as gas, electricity and even garbage pick-up are allowable tax deductions. It is critical to keep your payment receipts in your accounting ledger.Other Allowable Business ExpensesYou will also be able to deduct payments to your Internet service provider. If you have a created a website that you paid for, you will be able to deduct costs for domain name and a hosting plan. Other allowable items could be anything you have purchased to maintain your business such as; copy machines, scanners, ink cartridges, office furniture and supplies.Advertising Expenses and Membership FeesYou can also deduct marketing and advertising expenses as well as home business opportunity affiliate membership fees.In conclusion, keep track of any money earned with your Internet business. Income earned has to be reported to the IRS as well. Be sure you keep track of all your mileage, utilities, office supplies and income in your accounting ledger. Do not be concerned about being audited by the IRS. If you have all supporting documents and filed properly on time, there is no reason for you to be audited.If at any time you are not sure about something when filing your taxes, by all means, seek the services of a tax professional for your Internet home based business.

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