“Americans are spending more on taxes than on food and clothing,” a new report from the Bureau for Labor Statistics shows. In fact, it can be almost double! One of the reasons for this is that the vast majority of people don’t have anything they can use as deductions on their income taxes. The Tax Cuts and Jobs Act that passed in 2017 made lots of changes to the tax code– more than 600 of them, but it seems that having a home-based business is still a great way to lower your tax burden. (Disclaimer: I am not an accountant, nor a tax preparer, and I definitely recommend seeking their advice.)
With a home-based business, activities, such as the following, conducted in conjunction with business activities, can serve as deductions:
- Meals or drinks with a (potential) client/customer
- Advertising, Website Design and Development
- Airline Tickets
- Hotels and Lodging
- Rental Cars
With your home-based business, you could dedicate a portion of your living quarters to be a home office. When you do that, you can write-off portions of lots of things related to your home expenses, such as:
- homeowner’s insurance
- HOA fees
- cleaning services
- mortgage insurance
- repairs and maintenance
Well, when I take pictures with it while I’m on vacation and when I show those pictures to prospective clients, the pictures becomes advertising that serve as proof that the trip was for business purposes, thus creating deductions. Likewise, pool parties are often the location of training events, so sometimes I’m lying by the pool, but I’m involved in a business activity, thus I’ve created another deduction while working on my tan. 😉 Even family trips can function in this way. For example, when I visit my mom in San Antonio for the holidays, I create deductions for these trips by planning some work with my team members in San Antonio. It’s a small adjustment with a big payoff.
If you are really looking to save money on your taxes, I would highly recommend getting into a home-based business that will provide you a way to create some tax deductions for yourself. If you have more questions or want to learn how to deduct your vacations, please feel free to contact me.
Herron, Janna, and Susan Tompor. “Taxes 2019: When to File and What Big Changes to Expect.” USA Today, Gannett Satellite Information Network, 27 Jan. 2019, www.usatoday.com/story/money/2019/01/25/taxes-new-tax-laws-2019-filing/2665985002/
Wood, Meredith. “The Definitive List of 35 Home Business Tax Deductions.” Fundera Ledger, Fundera, 7 Feb. 2018, www.fundera.com/blog/home-business-tax-deductions.