Tax Time Checklist

• January 14th, 2008
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Tax time is here! I got this on email from Barefoot Executive. I have a subscription to their newsletter. There are some ideas on here that I hadn’t thought of before:

Here is a list of things to do now:

1. If you have inventory and didn’t do a count on December 31st, do it now.
2. Get an official odometer reading. If you are ever audited, IRS may ask to see proof of your odometer reading at the beginning and end of the year. If you haven’t had any repair work or oil changes in the past month, you will need to find a way to get a reading. If you don’t need any work done, you can always go to an oil change/repair work shop and request an estimate. They should put the odometer reading on the estimate.
3. Finish up 2007 filing and bookkeeping.
4. Review and complete your 2007 mileage log. It will never be easier to finish than right now. If you haven’t started your 2007 log, it’s ok — you can still do it now. Just look at your planner and
   receipts and use those to calculate your miles. 2007’s mileage rate is 48.5 cents per mile. For 2008, the rate is 50.5 cents per mile. It’s definitely worth preparing this log!
5. Set up your 2008 files. Think about your categories of expenses. By getting your files together now, it will be much easier to file your receipts throughout the year.
6. If you don’t have a separate checking account and credit card for your business, go ahead and establish them now. It’s always easier to do your recordkeeping, when you don’t have to go through and separate out personal and business expenses.
7. Make or review your business plan. This is great documentation of your intent to make a profit. It also helps you stay on track during the year.
8. Make appointments with yourself either weekly or monthly to do your bookkeeping. It is so much easier to do your paperwork and bookkeeping regularly. You’ll also be less likely to forget to include income and expenses.
9. If you pay estimated tax, your final estimate for 2007 is due January 15th.
10. Vow to learn as much as you can to help yourself keep more money in your pocket through legal tax deductions and strategies.  It is said that statistically, the average self-employed person overpays their tax bill by $3,000 - $5,000 every year. If you think you could be in this group, you owe it to yourself to learn as much as you can.

At Deduction Diva, we have developed tools and programs to help you file paperwork, develop tax plans and to learn about tax deductions. These tools were designed specifically for direct sellers. Check them out today at the Deduction Diva website.

Tags: Deductions, Home Based Business, Home Office, Tax Time, Work from Home, Write Offs