Congress passed the HBB tax laws with the objective to stimulate the strongest segment of the American economy – small business and the biggest objective is to encourage every taxpayer to have a home-based business, and to continue to work it actively.
The objective of Congress was to motivate taxpayers to have a fallback, a motivation to make MONEY. Money may not be the most important objective but it ranks high on the latter like being able to breath.
Congress ask a simple question: “What should we require them to do to qualify for these huge tax breaks?” The answer is have the taxpayer start and work a Home-based business.
To have a home-based business your business must be in your home. Sounds simple, however there are a couple of requirements you must meet to qualify as home based business according to the IRS.
If you qualify as a home-based business you qualify for Huge Tax Deductions. Simple facts, tax deductions help to minimize or eliminate your tax liabilities.
- have your business in your home is self explanatory it must be in your home house or apartment.
Second step is you must answer “YES” to the following questions.
- Do you work your business on a regular basis?
- Do you keep detailed records of your expenses and income?
- Do you have an intent to make a profit?
Work your business on a regular basis
When you start a home-based business and don’t work it on a regular basis, then it is considered to be a hobby. A hobby is NOT something you could fall back on and ramp-up to full-time business.
Keep detailed records
Treat your home-based business like a big, full-time business you may want it to become. Record your expenses and income weekly, keep your receipts and payments along with keeping up with the proper documentation the IRS requires. See IRS documentation requirements.
Have an intent to make a profit
Note the word “intent.” They wanted to incentivize us to start a home business so the tax breaks begin as soon as we begin honestly trying to make a profit.
OK! This a quick snap shot…you meet these requirements and your a Home-Based Business with the rights and privileges for Huge Tax Deductions.