Jul
10

Business Use-of-Home Expenses

House-sitting-on-a-calculator
Do you run a small business from your own home? If you do, did you know that you can deduct expenses for the business use of a work space in your home? Yes, you can do that. That is one of the many perks of having a business – being able to deduct expenses that were incurred to earn business income. As long as you meet one of the following conditions, you can deduct expenses for the business use of a work space in your home: - It is your principal place of business. - You use the space only to...
Continue reading
0
Jul
08

Business owners reap the greatest rewards!

46779396_l
Any business owner will tell you that running your own business is very hard work. It is an investment of both your time and money and it does not always pay at the beginning. But as with anything that you work hard for and feel passionate about, having your own business can reap the greatest rewards! Business is key to wealth accumulation along with bullion and real estate. Wealth goes beyond money and riches. Wealth is preserved and passed on to the next generations as it is inherent. So why is business an important form of wealth? • Business creates the...
Continue reading
0
Jun
19

Business Expense: What are Capital Expenses?

8255696_l_20170221-235402_1
As a business owner, you must have some knowledge on what amount you can deduct in a year for any business expenses you incur. For starters, the amount you can deduct for any expenses depends if it is considered a current year expense or capital expense. Renovations and expenses related to extending the useful life of a property are usually considered capital expenses. Here are the general features to determine if your business expense is a capital expense. - A capital expense generally gives a lasting benefit or advantage. - The cost of a repair that improves a property beyond its...
Continue reading
0
Jun
12

Reporting your self-employment income: Reporting Methods

9-5
There are two methods in reporting income – the cash method and the accrual method. Farmers, fishers and self-employed commission agents can use either the cash or accrual method. All other self-employment income must be reported using the accrual method. What is the cash method? When using the cash method, self-employed individuals must report income in the fiscal period they receive it and deduct expenses in the fiscal period they pay them. When using the accrual method, the self-employed individual must report income in the fiscal period they earn it, no matter when they receive it and deduct expenses in the...
Continue reading
0

The KD Blog