RECORD your business ACTIVITY
As you know from Special Issue #1 and from the early chapters of
“Home Business Tax Savings, Made Easy,” you must work your business
“on a regular and consistent bases” as one of the foundation requirements
to qualify for any of the home-business tax deductions.
Since we need to “prove” that we met ALL of the requirements,
how do you prove you met THIS one?
You need “records,” of course, but keeping those records
can be practically a no-brainer. Seriously! Here’s why…
Tax Courts have ruled that even a taxpayer’s notes written in longhand,
including those recorded in pencil, is acceptable as evidence in Tax
Court legal proceedings.
So, keeping “IRS-Compliant” records of your business activity is really easy!
Just jot notes every day in your calendar, day planner, planning diary or in
your bedtime memoirs.
Here’s what I do…
I record in my scheduling calendar, everything that I plan to do on a particular
day. At the end of each day, I delete anything that I didn’t do, and I add anything
I did that hadn’t been on the list.
Guess what I have at the end of the year? NOT a daily record of what I had
planned to do, but a daily record of what I actually DID.
How valuable do you think THAT will be if I ever need to defend
myself in an audit?
That’s #7 of the 12 best tips I can give you to legally slash your 2014
taxes to the bone.
SEARCH THIS BLOG for Special Edition 8 of 12 tomorrow.