Here are the top five deductible expenses for Home-Based Businesses:

1. Meals and Entertainment

In a home-based business, it's easier than with most businesses to mix business with pleasure, and it's perfectly legal for you to take the appropriate deductions. Have you ever had lunch with a friend, relative, or co-worker and discuss your Network Marketing business? Did you know that meals like this may be 50% deductible? Do you occasionally take a friend, relative, or co-worker to a sporting event, golf, theater, or movie? This type of entertainment can also be 50% deductible as long as you discuss business before or after the entertainment. Proper documentation is important, however, so make sure you know the rules.

Do you entertain at home; give parties, have friends over for dinner, etc? This type of entertainment can be 100% deductible, if you know what you're doing. Again, proper documentation is the key, but it's a lot easier to deduct gatherings at your home than you probably think.

How much can you save by converting some of your entertainment expenses to business deductions? Again, we look to Sandy Botkin for the answer. He claims that, his students increase their entertainment deductions from an average $1,500 before his seminar, to a whopping $4,000 the year after the seminar. That's about $875 in taxes you've already saved-and we're just getting started!

Let's keep track of the total and add everything up at the end of this article. I think you'll be shocked at how much you've been overpaying in taxes each and every year because you don't have the correct knowledge.

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