Small Office-Home Office Tips #3



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TipWorld - http://www.tipworld.com
The Internet's #1 Source for Computer Tips, News, and Gossip

Proudly presents:
The Windows 98 Tip of the Day

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*1.   CONTRACTING IS TOPS

General contracting led the list of the top home-based business 
start-ups in 1997, followed by construction, computer services, 
and business consulting. Cleaning services came in fifth, 
followed by real estate, painting, crafts, trucking, and 
marketing services. For details, visit Inc. Online's Almanac on 
small business start-ups at

http://www.inc.com/incmagazine/archives/27981311.html


*2.   CLAIMING A BUSINESS DEDUCTION

As you may know, you can claim as expenses goods and services 
that you buy for your business. But the IRS is keenly aware 
that people often use some purchases--such as cell phone 
services--for personal, as well as business, use. To claim a 
partial deduction on the percentage of the item you use for 
business, you should keep a log. For example, with a cell phone, 
you should log every call you make that's related to your 
business. Of course, you'll want to consider whether the 
record-keeping burden is worth your time for saving just a few 
dollars on your taxes.


*3.   SCHEDULING FOR PRODUCTIVITY

In many cases, working at home gives you the luxury of setting 
your own hours. You can get the most out of these hours by 
planning the best times for you to work on different activities.
For example, you might be a little slow getting started and 
prefer to work on a less-challenging task, such as answering 
e-mail, early in the day. Or perhaps you get tired of looking 
at the monitor in the afternoon, so you set aside time for 
making phone calls around 3 p.m. If you use the Internet a lot 
in your work, try to go online during off times, perhaps early 
in the day. (People in the Eastern time zones can potentially 
get quite a bit of work done before the rest of the country 
logs on.)


*4.   A TAX DEDUCTION UPDATE

Kerry Kerstetter writes, "I appreciate your SOHO tips. Your 
piece on the Section 179 deduction (January 13) was a little 
out of date. The limit was $18,000 for 1997 tax returns. It is 
$18,500 for 1998 tax returns. It continues to rise in 
subsequent years: $19,000 for 1999, $20,000 for 2000, $24,000 
for 2001 and 2002, $25,000 for 2003 and thereafter, until 
Congress changes it again."  

Thanks for updating that information and spreading the good news
to other subscribers! If you're seeking more information on the 
Section 179 deduction--which can be used to deduct the costs of 
business property, including computers--check out the IRS site at

http://www.pcworld.com/r/tw/1%2C2061%2Ctw-soho0304%2C00.html


*5.   TELECOMMUTING SOFTWARE DEMOS

Symantec is offering demonstrations of pcTelecommute, the 
software package designed to help log work, manage calls and 
faxes, synchronize files, and provide control of a remote PC. 
(You'll need Netscape Navigator 4.05 or Microsoft Internet 
Explorer 4.01 or later to run the online demo.) You can also 
order a 30-day trial of the software through the site. To view 
the demo, go to


http://www.symantec.com/pctelecommute/


*6.   CONTRACTS MADE EASY

QuickForm Contracts Online will guide you through the process 
of creating a contract. After you agree to the licensing terms, 
you'll be presented with a series of questions to draft the 
contract. You can then order the completed contract for $19.95. 
Forms available through the site cover many areas of business, 
including Internet advertising agreements, professional services 
agreements for consultants, and basic ordering agreements. You 
can check out the offerings at

http://www.quickforms.net


*7.   QUICK DOMAIN NAME CHECK

BellSouth offers an easy-to-use tool for checking to see if the 
domain name you'd like for your business is already taken. Just 
type the domain name you'd like--including the top-level domain, 
such as .com or .net--then click the Check It! button. You'll 
get your answer in seconds. (Since BellSouth sponsors the site, 
you won't be surprised to find links to the company's 
Web-related services at the bottom of the page.)

http://www.biz.bellsouth.net/products/hosting/check-domain/


*8.   RECORDKEEPING WITH YOUR CALENDAR

Your calendar can help provide documentation if the IRS ever 
questions any of your business-related deductions. A paper 
calendar is fine, too; just be sure to note who you meet for 
business meals, car trips, and so on. Including details on your 
calendar, such as the purpose of your lunch discussion, can 
help further justify the expense.


*9.   TWO PHONES, ONE LINE

If you have only one phone line for your home-based business and 
you also need to use it for Internet access, here's an 
inexpensive way to keep callers from receiving busy signals when 
you're online. Your local phone company should be able to 
provide you with a voice mail box and call forwarding for as 
little as $15 per month--possibly less, if the company offers 
service "bundles." Call forwarding will route an incoming call 
to your voice mail box when you're online, and you can pick up 
the messages later. (Other solutions, such as adding a second 
line, are more elegant, but they also cost more.)
       
*10.   DON'T JUST BARGE IN. . .

When you're making phone calls, it's easy to get hurried and jump 
right into your spiel when you reach your client. A better 
strategy is to take a few seconds to briefly state the purpose of 
your call and ask if the person has the time needed to discuss 
it. For example, after introducing yourself, you might add, "I 
was wondering if you might have about five minutes to go over 
the changes you asked us to make to your Web site."
