Network Marketing Tax Tips: Play it Smart
Whether you are just starting out of have been in the network marketing game for years, you have to file taxes on your income. These network marketing tax tips can help you get ahead of the game and file with confidence.
Arm yourself with a tax advisor.
One of the best things you can do for your business, your pocketbook and your peace of mind is to get a tax advisor. Even if you file yourself, you need to have a tax advisor you can call for advice and assistance if you need a little help.
Know what deductions you can take.
Many people know some of the deductions they can take when it comes to business, but a home office presents some pleasant surprises at tax time. There are some deductions you can take that just might surprise you:
A portion of your mortgage and utility expenses for an office space that is in your home
Mileage for business related travel to see clients or to go to meetings
A percentage of your computer cost and expenses as well as internet, particularly if the business is web based
A percentage of your phone bill for making business related calls
Business related training, seminars and conventions
Advertising for your business
Keep good records.
This should go without saying, but there are a lot of people who don’t keep good records. Then at tax time or in the event of an audit, they are left scrambling, digging through a shoebox full or receipts. Save yourself the time and irritation; keep good records. Organize your receipts and other important documents in the best way you can. Even something as simple as a sectioned folder can help tremendously in keeping your records organized and easily accessible.
Consider filing quarterly.
Many people find that filing quarterly is just easier. It is easier to stay organized and easier to keep records. Talk with your tax professional to see if filing quarterly is right for you.
Start a tax account.
Open an account that is specifically for paying the taxes you each quarter. Take about a third of every check and stick it into this account. When you file you will pull from this account to pay your taxes. You may even find that you sometimes have money left over.
Many tax professionals advise incorporating if, after write offs, you make $40,000 a year. You should also incorporate if you have a lot of assets. Incorporating can offer protection for you so talk with your tax professional and see if it will be of benefit for you.
Don’t cut corners.
This is your money; this is not a time to be cheap. If you don’t handle your finances and taxes appropriately, you could incur large fines, lose your home or even go to jail. Don’t mess around with this, it is serious stuff. Know when you are in over your head and don’t hold off getting a tax professional to help you because you don’t want to pay for them. Being cheap usually tends to cost big in the long run.
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