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Independent contractors have more tax considerations than people who are employed anywhere. Therefore accounting jobs at home provide some helpful tips to handle tax issues. Deferred compensation plans have an agreement or some arrangement that provides deferral of compensation by employees. According to this they call for compensation payments at certain time in the future, which might generally be after the termination of employment. It is essential to maintain an independent contractor status as the IRS might imply that you are an employee if you are working for one client. If this happens one loses ability to deduct expenses and also does not gain benefits of a regular employee. Using own equipment might help here. If the business does not make profit for 3-5 years it is termed as a hobby by IRS. However, even without a profit one can prove that the enterprise is a real business and not a hobby if it is turned in a business like manner. CPA jobs at home can give tips for this.

Take advantage of capital asset expensing deductions
Tax deductions are some expenses which contractors can subtract from the taxable income. They are eligible to several tax deductions like entertaining clients, business travel, or maintaining a home office. Expenses of landlines used for business related phones or Internet are deductible. Double bonus depreciation – full expensing, review deferred compensation plans are some other deductions possible. It is beneficial for contractors to work with tax professionals while filing their returns. Even if they handle accounting jobs at home these things can be kept in mind.

Maximize 199 deductions
Before a couple of years the Congress enacted section 199. Manufacturers being the main beneficiaries the Congress tried to find another way to provide incentive for domestic manufacturing. All domestic production activities like oil extraction, mining, construction, farming, engineering, architecture etc. come in this category. Contractors should keep a detailed record of financial transactions like income received and receipts for all professional expenses. Because without records it is difficult to report income earned and detects tax deductions. Have a proper business plan and a separate bank account for business, phone line etc. Attend professional seminars and take courses in business with experts on growing the business. Accounting jobs at home can easily handle the situation if these steps are taken for bookkeeping jobs at home.

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