At OTB Tax, we love educating our clients on some of the most profitable tax deductions available to business owners and home-based business owners!
Did you know that there are actually 475 different deductions available?
Let’s take a look at two of my favorites!
1. You can hire your kids.
This has to be one of my favorite deductions because I’m the mother of six children. And they’re expensive! You can pay your minor-aged
children a reasonable wage for helping you with household chores if you work from home. You can also hire them as your assistants if they respond to people in your Facebook groups, or hire them as models if you need pictures of products you’re selling or for the ads you run!
Just make sure you use timesheets to record the time they spend helping and don’t pay them more than you would pay any other housekeeper, assistant, or model! You kids don’t have to pay taxes because they are minors and you can write
it off as a business expense – up to $12,000 per year per child!
Want to learn more? Check out my video here: Hire Your Kids.
2. You can turn everyday living expenses into business expenses.
If you own a business, deductions for everyday life are available for you too! Did you know that a percentage of your cell phone bill can be a business expense? If you work from home, you can divide the area of your office by the total area of your home. Then deduct that percentage from your mortgage interest, real estate tax, utilities, and homeowners insurance!
Any home office repairs are 100% deductions! Learn more about home-based business deductions here: Home-based business deductions.
As always, the team at OTB Tax is here to help, with everything from deductions to tax strategy for your next tax return. Click here: Book a Tax Strategy Session With OTB Tax Team.
Here’s to a more relaxing and less taxing education on deductions!