Running a home based business reaps many wonderful tax deductions that other businesses some times might not claim. Unfortunately to many small business owners finish up paying the government taxes every year because they are unaware or several small business deductions that are available.

Most of the time any expenses that are related to your business may be added as a deduction on your taxes. If you do not pay taxes through out the year, deductions may help you from paying a large amount of taxes each year and may also adjust earned income. Try to avoid paying large amounts of taxes or owning any funds by keeping track of simple things!

Each doing business is a bit different so be sure to mention these ideas to your tax advisor or accountant to see if your business might qualify for these deductions.

1- If you join any business or purchase into any franchise, the expenses such as kits, or franchise fees can be claimed as a deduction.

2- Business Supplies. Be sure to save all receipts for any supplies you purchase for your business utilize. Computer paper, business cards, pens, catalogs, or any items you purchase and make use of for your business.

3- Advertising- Most promoting could be claimed on your taxes. Keep all receipts for any newspaper ads you may run, or any advertising you do online. Advertising is a business expense and in most cases may be written off.

4- Items Given Away- Keep a list of any items you can give away, and the costs of these items. Most freebies can also be written off.

5- Phone bills and internet access- If you have a phone line for business use or have the internet in your home or office for business make use of , save all receipts for each bill paid. These items are business expenses and might also be written off.

6- An in home office- If you have an office in your home, contruct sure to let your tax advisor know. Using a room in your home as an office can also be added on taxes.

7- Long distance calls- If you generate any long distance calls that are related to your business, generate sure you keep all phone bills showing the calls and the amounts charged. If these calls are related to your work, the cost of the calls may also be written off in most cases.

8- Returned Checks and Bank Fees. If you incur and bounced checks from customers and can not collect on them, those amounts can be deducted, along with any fees you we are charged from your bank. Be sure to keep the returned check, the letter from your bank and your bank statement to show the fee you we are charged.

9- Postage- All postage costs paid by you or shipping fees could be claimed. Keep receipts for all shipping supplies, and postage.

10- Computers- If you purchase a new computer for business utilize, the cost of the computer might be claimed. You might also claim depreciation for 3 decades after the computer was purchased.