Customer Stories – Wedding Day Disaster

This particular customer from the east coast purchased some wedding handkerchiefs from our online store about 10 days in advance and had them delivered directly to her wedding venue. The one mistake she made however was that she addressed the package to her maid of honor instead of either herself or the wedding planner. As a result, the people at the wedding venue had no idea who the handkerchiefs belonged to and the package got lost at the wedding venue itself. So the day of the wedding, we received a bunch of calls. Since, we are on the...

Customer Stories – Exploiting Chinese Labor

Every now and then, we get a customer that drives us totally insane. While it isn’t fun to deal with these customers, working with these difficult people make for great stories to tell our friends. This particular customer that I’m writing about was a very headstrong lady that gave us a really hard time about our products. Customer: “Yes, I’m interested in your linen towels. Where are they from?” Me: “Many of our products are from Asia. These particular towels are made in China.” Customer: “Hmm, China huh? Do you happen to know whether these towels were created...

How to Deduct Your Home Office on Your Taxes

In order to deduct your home office, your business must follow the following rules. Your home must be your principal place of business. This means is that you conduct all of your business related activities in your home and you have no other set locations where you do business You must have a special area sectioned off for your business. This might be a separate room or the garage. Anywhere that you store inventory or products counts as well. You must actually conduct business at home and use the dedicated space solely for business. This one sounds like a no...

How to Deduct Equipment and Supplies on Your Taxes

The biggest advantage for small businesses is a little Internal Revenue Code known as Section 179. Section 179 allows small businesses to deduct up to 108k (Note: This number changes every year.) of assets completely every year. What this means is that you can deduct up to this amount in business equipment, computers, furniture etc… without having to worry about depreciation or other tax calculations. Of course, section 179 comes with a few requirements that must be met. Purchases must be used mostly for business The official rule is that the asset that you are deducting must be used...

How to Deduct Entertainment and Meals on Your Taxes

Deducting entertainment and meals is often a gray area that people take advantage of. My general rule of thumb is that as long as you don’t abuse the tax code, you should be fine. I use what I call the “bullshit” code. If I can tell my wife with a straight face that a particular expense was used for business purposes, and my wife doesn’t think its BS, its usually good enough for me. Officially though, anything you expense must obey the following rules. The entertainment expense must be reasonable and accepted in your field of business – For...

How to Deduct Travel Expenses on Your Taxes

Ever heard your spouse complain that you never go on enough vacations? Using your business as a tax shelter is a great way to fund your next vacation without breaking the bank. With proper planning, you can get your business to pay for and write off most of your trip! For starters, the trip’s primary purpose must be for business. As long as your destination is not completely random, chances are you can find a way to do business there. Below are some general guidelines on what and how you can deduct during your travels. ...

Business Expenses: What You Can Deduct on Your Taxes

One of the key reasons for starting your own business is that it can provide an effective tax shelter. Many of the expenses that you incur during day to day operations can be deducted directly from your taxable income. Since there are many misconceptions regarding what can and can not be deducted, I thought that I would go over some of the common items that small businesses can write off. The Tax Code The tax code is a little bit vague which is why many people get themselves into trouble. A deductible business expense is defined as any expense...

How to Deduct Your Vehicle on Your Taxes

Deducting your vehicle as a business expense is a bit tricky but well worth it, especially if you’re putting a lot of miles on your car. The number one rule of thumb when expensing your vehicle is to keep detailed records. Make sure you use a trip or mileage log and write down each and every mile that you are using the car for business. This sounds like a major pain, but its not too bad if you keep a log book and pen in your car at all times. Whenever you drive somewhere, just write...
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