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7 Timely Tax tips for Your Ecommerce Dropship Home Business

 

tax tips dropship home businessIt’s almost tax time again and if you have an ecommerce dropship home business, you might be glad of a few tips to help you get every break you possibly can when it gets down to settling up with Uncle Sam.

One of the great things about earning your living from home is that you have so many legitimate tax breaks!

If you fail to use them all, you’re leaving money on the table and that’s probably the last thing you want to do, right?

Make it Your Business to Understand Deductions

It is vitally important to learn all you can about the tax deductions available to a home business entrepreneur.

The following 7 tips can help you utilize the tax write-offs you’re entitled to:

  • If you need new office equipment, buy it now. Computers, printers, fax machines and so on can be costly. If you wait and purchase one or all of these items next month, it will be almost a year before you can get the tax credit for it. This also applies to home office furniture or anything else you need in order to run your home dropship business. Don’t forget that you can also deduct your landline and cell phone if you have an ecommerce business. The phones themselves are deductible, along with the monthly service charge.

  • Thinking that it might be helpful to attend a business conference? Do it now. Business trips are 100% tax deductible and if the trip you decide to attend is in Florida or sunny California---so much the better.

  • If you haven’t been keeping all receipts organized for your business expenses, get started and get them in order now. You certainly don’t want to short yourself when it comes to deductions!

  • Be aware that since your office is in your home, you can legally deduct a certain amount of your mortgage or rent, as long as your office space is not used for anything else. In other words, if you conduct all of your dropship business on your laptop while sitting in a recliner in your den or living room---you can’t claim this deduction. The IRS states that home office space must be used “regularly and exclusively” for the operation of your business in order to qualify. This is also applicable to your utilities, insurance, property tax, etc. A general rule of thumb is that if your home office makes up approximately 10% of your home, you can deduct 10% of all those expenses.

  • Got a website? Don’t forget to deduct any and all costs associated with it if it’s used for your ecommerce home dropship business.

  • Use any freelance help for graphics, website maintenance or design, copywriting or other jobs associated with your home business? Deduct what you paid for these services.

  • If you are selling on eBay or Amazon, you can deduct all the fees you pay to sell your dropship items there. You may also deduct Paypal or Google Checkout Merchant fees. Ditto for what you might pay to a credit card company if you’re set up to take credit card payments.

These are only a few of the tax deductions you may be entitled to if you operate an ecommerce dropship home business, so to make sure you don’t miss any and cheat yourself, you might consider getting an accountant to do your taxes or investing in some good tax software.

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