Cut Your Expenses

in Forum: Accounting & Financial Management

Source of this discusssion: /steps/75/3832/3/1/cut-expenses.htm Page description: Once you have a clear concept of how much money it takes to run your business day to day, you can find ways to chip away at the costs of doing business.

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Aug. 02 2007 at 12:37 PM
Posted by: twenkie “Quote Reply
Thank you for this very useful information. I'm operating a new home based business, KittySlicker.com, and was wondering if it is possible to allow part or all of rent/mortgage as a business expenses prior to earning a profit. Barbara Barbara
Aug. 02 2007 at 2:41 PM
Posted by: vwebworld “Quote Reply
Yes, you can (for Frederal Tax purposes) deduct a portion of you house expenses including, utilities, insurance, mortgage interest, and depreciation. TWO important points: (1) For the portion you deduct - it should be a space that is exclusively used for the business. (2) If you deduct a portion of the mortgage interest remember to subtract that amount from the mortgage interest you deduct if you itemize deduction. Also, if you choose to depreciate that space it can affect the tax basis and status of the house if and when you sell the house... creating a taxable event. ~Roland Web Design \| Golf videos \| ecommerce articles \| Golf Lessons
Aug. 02 2007 at 7:01 PM
Posted by: PiperTax “Quote Reply
Great answer Roland. I'd just like to add one quick thing: your deduction for business use of your home is limited to your business income. In other words, if you have no revenue yet, you won't be able to use this deduction to create a business loss, and then use that loss to offset other taxable income. Also, I just have to say that I think kittyslicker.com is an absolutely fantastic domain name. Hope this helps, Mike Business Tax Books \| Sole Proprietor Tax Guide
Aug. 07 2007 at 5:36 PM
Posted by: iouone2 “Quote Reply
Something else I would like to point out about the topic, "Cut Your Expenses." It is wise to continue searching better wholesale prices for the products or materials required to run your business. Of course, you don't have to do this daily, but when you notice orders are being made and you continue buying supplies from the same venues, sometimes you can work out a better wholesale price based on your volume of use. Remember the first time you purchased supplies, you couldn't forecast their usage with any certainty. Now, that your business is running, you may be able to renegotiate specific contracts or find better suppliers. Vincent Wilcox (a.k.a. KRAKR) Drummer My band: Letters Make Words
Aug. 08 2007 at 5:57 PM
Posted by: twenkie “Quote Reply
Thank you for this invaluable cost cutting information. Very helpful!! And Thank You for the compliment about the domain name!! Barbara
Aug. 10 2007 at 4:03 PM
Posted by: Rich “Quote Reply
vincent, could we use your tip as a formal tip within the actual content at our site? much as we've done with SUN community members in 10 Steps to Grow? rich Rich Sloan Co-Founder, Chief Startupologist, StartupNation