What Tax Deductions Can I Claim Running My Home-Based Gourmet Gift Basket Business?

Introduction


Let's face it: Running a gourmet food or gift basket business is challenging, tiring and alot of plain old hard work!  

Having agreed upon that, it only seems reasonable to us that if you're going to go through all of that grief, you might as well arrange your affairs in a way that will enable you to reduce (or better yet, eliminate completely!) your income taxes.  Although everyone's income tax situation is different and we are not tax accountants, we have been around the gourmet food and gift basket industries to know that you certainly can reduce your income taxes by operating your company from your home.  In our travels around the Internet, we came across this short but highly informative article about how you can reduce your income taxes by operating your gourmet food gift basket from your home.  (After all, it's not how much money that you make that counts.  It's how much you can keep!)

How Can I Claim A Home Business Tax Deduction?

By Michael Williams

Working from home or starting a business from home can be a huge task to undertake, but if you know how to take advantage of things such as the home-based enterprise tax deduction, it may be a worthwhile endeavor. There are many different ways to qualify under the provisions of the home business tax deduction. Let's take a look at a few.

First of all you can deduct your home office when applying for the tax deduction. The best way to do this is to include those things, which you use exclusively for your home business. There are only just a few things you can use to qualify that you used indirectly, and this requires careful record keeping on your part. However, being able to benefit the most from the home-based enterprise tax deduction may include a little work that in the end will reap many rewards.

Another option in home business tax deduction is your car. If you use it in any way to help your business or in any way that your business benefits from it can be used. The tax deduction allows for your actual costs, which include any operating and maintenance expenses, or you can use the IRS mileage rate, whichever benefits you best.

Another thing that can be used in the home business tax deduction is what is called personal assets. This includes computers or any telephone lines you may use. You must be able to apply the percentage of use that this includes.  Travel costs can also be included in a home-based business tax reduction. It can be applied either to you or any employee, client or partner in the business. This can include, tickets, hotels, transportation, shipping and even tips are included. However, any actual meals are only qualifying up to half the total amount.

One really nice thing that can also be included in a home business tax deduction is that up to 50% of any gifts you may purchase that are related to the business, such as to win a new client, can be included in calculating this deduction. This may include any expense on meals or tickets.

There seems to be quite a few advantages to running a business out of your home, especially when it comes to home biz tax reduction. As you can see, if you are careful and responsible, you can easily get the best deal when it comes to deductions and the benefits of home-based biz reduction.

Check out http://www.easy-tax-deductions.com/ for more articles on tax deduction software and self employment tax deductions.

Phyllis and Greg Sprout began their company, epicureanfoods.com, in July 1993.  They specialize in supplying hard-to-find gourmet foods and gift basket supplies to gourmet shops, gift shops and gift basket companies across North America. 

They have helped the founders of literally thousands of gift, gourmet food and gift basket companies start and grow their businesses.  Many of these companies remain excellent customers of epicureanfoods.com today.  They can be reached at phyllisandgreg@epicureanfoods.com.