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Home-Based business tax deductions, 2021 for cottage food businesses

Posted by Damian Roberti on

Home-Based business tax deductions, 2021 for cottage food businesses. Mortgage or rent, if you're renting or even have a mortgage, can actually be written off as a tax expense or tax deduction. If you are starting a food business from home, and we're going to get into that 20 right now. Some states cottage food businesses do not need permits or licenses to operate. A portion of the square footage in your kitchen, if you're operating a food business from there, can be used as a tax deduction.

Your phone and internet as a utility can be a deduction for your home-based business. I highly recommend that you create an LLC. You're still going to open yourself up to liability issues. If somebody were to have an allergic reaction or get sick, you personally could be held liable for that. Some states don't require permits or licenses, but some actually do.

Printing services, whether it's a business card or leaflet, all of that printing services, you need to keep a receipt because that is a tax deduction. Next up number nine is going to be labels. The food packaging that you're paying for, if you're buying online or in a local store, keep your receipts. Many states allow you to sell products online, but you have to deliver them locally. If you're having a website developed for you, you need to keep your receipts.

You also need to have hosting, which can add up to $600 just to have a website online. Fees for advertising, online courses, books, periodicals and other items that can better you for your business are tax deductions. The IRS allows you to write off a certain amount of miles based on your business. If you have a business credit card dedicated to your cottage food business from home, you have the opportunity to take that interest and check into that and bring it up to your accountant. Any gas that you put in your vehicle, you need to keep receipts for it.

That is being used for your business. If you get a website, you have to have. what's called a domain name in order for you to register the. domain name and obviously have it annually. If you are looking for some great tax deductions under cottage food laws, or creating some type of food business from home, keep these in mind and of course, write them down. If this was a helpful video, please do give us a big thumbs up and I'll see you on our next video.

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