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Even if you have a JOB (Just Over Broke) open a business! You will earn extra income AND get to keep more of what you make with some tax deductions. **Disclaimer! Please ALWAYS consult your tax professional regarding tax matters. We are not tax professionals!** One of those is the home office deduction but be honest, you should be able to defend your deduction in an audit. Meals and entertainment when you conduct business with a person you are entertaining during the meal or event. Be sure you keep good records of what the activity was, when, with whom and how it relates. Another possible deduction is internet and phone directly related to your business. Vehicle deductions for local business trips can be deducted either by the standard mileage rate or your actual expenses. Education for yourself can be deducted as well. The list goes on and on. Another VERY helpful benefit of a small business is being able to contribute to a Self-Employed Retirement Plan and the tax benefits you can recognize. These are a twofer! They are particularly valuable for reducing your tax bill now and racking up tax-deferred retirement savings for later.
Can you share more benefits of having a small business? Please comment.