4 Home Business Ideas That Double as Tax Write-Offs
Are you stuck inside due to recent COVID-19 restrictions and social distancing? Do you wish you had a business you could run out of your home to keep yourself busy and keep your mind off of not being able to go outdoors and enjoy social gatherings? Starting your very own LLC to realize your dream and prevent boredom can be a great way to utilize your extra time.
Here are some of the best home business ideas that can bring in some money while also doubling as a helpful way to increase tax write-offs so you can keep more of your hard-earned money.
4 Home Business Ideas to Consider for Tax Savings
If you already have the skill set, you’re able to jump into an at-home business extremely quickly. If you don’t have all of the necessary skills, time stuck inside becomes a great opportunity for learning and growth.
If you aren’t sure how to go about starting your at-home business, check out this useful Start a Business Checklist that allows you to check things off as you complete them. You’ll be on your way to owning and operating a business in no time. Here are four home business ideas with tax savings potential to get you started.
1. Retail Arbitrage/Reselling
Retain arbitrage involves purchasing items for pennies on the dollar at places like Goodwill, Dollar General, Dollar Tree and online wholesalers. You can purchase them in bulk to sell online at a higher price point.
Gary Vaynerchuk, a multi-millionaire businessman, loves this process and still enjoys Saturday morning garage sales where he picks up good deals to flip on eBay.
All you need to run this business is an area of your home where you can set up shop and also store all of your inventory. You’ll also need an internet connection to make sales on platforms like Amazon, eBay, Craigslist or Facebook Marketplace.
But rather than going out and buying stuff (since many can’t and shouldn’t during COVID-19 restrictions), why not sell things you don’t use or want anymore that is lying around your house? Have your own “online garage sale” and list your items on a platform to sell. Remember that “one man’s trash is another man’s treasure.”
2. Online B2B or B2C Services
If you’re not working currently, what skill do you have that others would benefit from? Are you a great marketer? Plenty of businesses are looking to outsource marketing rather than build their own team. Look for different businesses online you could help and reach out to them.
Maybe you’re good at building a following on social media and want to leverage your expertise to help brands expand their reach on social to increase traffic, conversions and sales. Assuming you have a large following yourself that you can use to showcase your abilities, reach out to brands and see if they would be interested in your social media management services.
Some additional online B2B or B2C ideas to consider are:
- Virtual assistant
- Personal training
- Nutrition consulting
- Online coaching
- Logo designer
3. Create Online Courses or E-Products
Courses, ebooks, audiobooks and webinars are all things you can monetize. Utilize your time inside to the fullest by creating your very own online course or e-product.
These items can be sold online and people can consume them when they want and where they want. They can use their phone, tablet, computer or laptop. With the product being accessible online, you can market your business and product(s) to millions of people all across the globe. You can also have your course or e-product transcribed into other languages to expand your market as well.
The topics ideas are endless. Think of a common problem that you or the people around you face. Then, create a solution through an online course or e-product.
4. Use Your Creativity
Do you have the burning desire to be creative in your free time? Woodworking, pottery, painting, drawing, writing song lyrics, recording music — there are lots of options.
There’s no better time than right now to take your passion and turn it into a lucrative home business. You can let your imagination take you anywhere you want when creating unique, one-of-a-kind pieces that you can sell.
Create space in your home, whether it’s an extra bedroom, the basement, the garage or a section of your living room to “set up shop” and get your creative juices flowing. You can open up a great revenue source for yourself and your family. You just need to put one foot in front of the other and get started (which tends to be the hardest step).
Tax Savings for Home Businesses
When you accumulate expenses for your business (marketing, advertising, travel, company vehicle, cost of goods sold, business insurance, postage, professional services, office supplies, etc.), those are generally going to be written off on your taxes.
It is always a good idea to work with an accountant to ensure you not only properly file your taxes, but also get the greatest tax savings possible.
Here are more deductions you can take advantage of:
- Business phone line (such as a dedicated cell phone)
- Internet connection
- Utilities (gas/electric/water)
- Homeowner’s insurance
- Mortgage interest and insurance
- Homeowners association fees
- Cleaning supplies and/or cleaning services for your business space
It’s a great feeling knowing you can take home business ideas and turn them into highly profitable businesses that can lead you toward financial freedom. Through owning your own business, you can take full advantage of the many tax advantages and deductions that can ultimately save you thousands on your taxes and keep more money in your pocket.