Recession or Depression, regardless of what you want to call it, everyone is going to be affected by the economic situation that we are in, if you have not already.Today they jobless claims dropped instead of rose and some are saying that the recession is over and we are going to be on the upswing. Regardless, it will take many years before I think the effects of what has been happening here in this country are realized. And I feel that the next few years will actually wind up being harder than this past year.There is no doubt in my mind that our taxes are going to be increased, regardless what the current administration says. The question I had was how can I limit or minimize the impact of those tax increases when they do come. And they will. It may not be how we think, but the government has to pay for the bailouts some how.I have known for years that having a business based out of my home has saved me thousands on my taxes. And this was while I was still working as an employee. When you realize that there are ways to work within the IRS guidelines to reduce your tax liability, you will wonder why you didn’t start a home based business sooner!If you are running a legitimate business out of your home, but still bringing in a regular paycheck from a job, the deductions that you are allowed to take, can be transferred immediately to your paycheck, thereby giving you an instant pay raise.So starting a home based business will allow you to take more deductions. More deductions means that there is less taken out of your paycheck each week. Having a home based business is just like having additional children. The key is keeping accurate records, understanding the basics of the tax laws in regards to being in business, and filing the proper forms when the time comes to file your taxes.Don’t assume that your current CPA will know how to treat home based business deductions. I have found that a lot of CPA’s lack the knowledge that is needed in the home based arena to be adequate in understanding what is required from someone who works from home, versus someone who works at a corporation.Do your research, become educated. You don’t have to become a CPA to know how to run a business. You just have to know what to do regarding your type of business and how the IRS relates to it. When you see the amount of money you can save by doing your due diligence, you will be glad that you got educated.

A home based business is a big challenge which requires your full attention and devotion. Any distraction can upset all your business plans and goals. It is important for you to learn the ways to overcome these hurdles in order to succeed with your home business. In this article I will elaborate on few techniques that will help you overcome any diversions in your business opportunity.Your home can be a threat to your opportunity:It may sound paradoxical but it is true. If you base your business office close to kitchen, children’s room or drawing room you are bound to get distracted. The clutter of crockery from kitchen, television’s noise from children’s room and loud talk of guests from drawing room are sure to distract your attention from work.So what can you do? Locate your home office away from these places within your home of course.Your home business is a ‘real’ business:You’ll need to learn and make others understand that your home business is a real business. Just because you are running your opportunity from home does not make you less serious. Let no one take advantage of either you or your home based business.You need to tell your friends and relatives not to loiter around the home office area. Do not allow your home business office to become a place for family members, relatives and friends to idle away their time.Keep home life and business separate:Do not mix your family time with your home business. You’ll need to discipline yourself on this front. Sensitize your family members also on this issue. You should not be running petty errands every now and then simply because you are available at home.Business before pleasure:The advantage of any home based business is the freedom it provides to you. You are able to schedule your working hours as per your convenience. However, don’t allow this advantage to harm your opportunity in any way. You need to chalk out a clear cut schedule for business hours and adhere to it strictly.Internet – a boon or bust:The internet is really very helpful in promoting your opportunity. It helps you to connect with the people associated with your work and run your business smoothly.There is nobody supervising you at your home office. And herein lies the big distraction – there is a possibility that you are spending more time surfing the Internet for something that is not related to your business. Unless required for your opportunity, close the Internet and pay attention to your home business.Find time for distractions too:It is not possible to do away with the distractions from your opportunity. Instead schedule your time for watching TV, playing with your kids, listening to music, surfing the Internet for recreation purpose but all this should be regulated and balanced. After all you need to hit the bull’s eye in your home based business.