You can reap large tax benefits when you have a home based business in your RV. In order to do this you must be generally active as a network marketer or an Internet marketer. The best advice is to pursue your home based business in your RV with traditional types of work. By active I don’t mean full-time what it really means is you can adjust your tax write-offs based on the time you worked in your home-based business or combination of businesses.
How can we achieve those tax benefits? Let’s say that you start a network marketing business while RVing. While you’re in the campground you could hand out business cards, post flyers, have a phone number posted on your RV or tow vehicle that people can call to talk to you about your business. Gather a group of folks around the RV and tell them how you travel the country practically free. Set up a table during market days at the campground displaying your product or provided literature about your network marketing business. I’m sure that you can think of other ways to make folks aware of your business.
As we said before there are tax benefits associated with a business in your RV. What’s really important is that when it comes to claiming expenses and deductions for your mobile RV business you must record everything. The more records you have the more chances of having your claim allow. You should discuss with your accountant or your tax preparer what records you should keep and what the deductible expenses are. Most likely those expenses that are allowed for home-based business are also allowed for a RV-based home business. Remember that the key to being able to deduct business expenses lies in showing that you are producing an income while traveling. That’s why I recommend combining traditional RV work with your network marketing until your network marketing produces an substantial income.
There are many ways to record your expenses. You can keep a travel log or diary or log everything on your computer. Fill in your expenses every evening; remember to include details regarding the expenses. Don’t be greedy only claim what is a legitimate expense.
What are some of the legitimate expenses that you can deduct? If you run a website you could deduct the cost of your site design, computer, internet connection, and server fees. Other expenses that might be allowed are phone bills, a portion of the interest of your RV payment, travel expenses, conferences, meals and entertainment while discussing business with potential customers. Again I strongly advise you to check with your accountant or tax preparer.
There is a great book “Lower Your Taxes” written by Mr. Sandy Botkin, an expert on income taxes that I highly recommend you purchase either as a book or as an audio CD. In his book Mr. Boykin states “you have to be brain-dead not to start a home based business.”