Tax Deductible ExpensesRunning a home-based network marketing business is not only a great way to earn income, but it can also net you significant savings on your taxes each year.  The IRS offers several tax deductions to legitimate home-based businesses, even if you still keep another job on the side.  If you’ve been on the fence about starting a network marketing business, you’ll want to consider the benefits of these tax savings; you’ll find that having a home-based network marketing business as an additional side job or your full-time job can net you more deductions than being somebody’s employee.

Home Office Tax Deduction

Once you’ve created a productive workspace that effectively separates your work and home life, you can claim it as a deduction on your taxes.  According to the IRS, the amount you can deduct from your taxes is dependent upon the percentage of your home that is set aside for your business.

Deductions on Supplies and Equipment

Keep careful track of your receipts when you are purchasing supplies for your business, whether they be pens and paperclips, furniture, software, or electronics.  If you buy it for your business, it can be deducted from your taxes.

Deductions on Travel and Other Expenses

When you travel for your network marketing business, expenses like mileage, hotel, travel costs, and fifty percent of your meals are considered tax-deductible.  Whenever you meet clients, keep track of your car mileage and the receipts for any other expenses you incur.

These tax deductions are worth pursuing, but you do need to treat your network marketing job as a business for profit.  Keep careful records and make certain they are neatly organized.  The IRS is not known for its easygoing nature, so be certain to consult with a tax specialist when filing taxes and deductions to avoid incurring an audit.  If you do everything right, though, you could end up saving a ton of money each year on your taxes.

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