May 5, 2011 Category: Tax Advice for Home Businesses

There are several benefits to owning a home based business and one of them is tax deductions. If you are operating a home business, you can claim deductions of business related expenses. But before you can do so, you need to determine first if you qualify per Internal Revenue Service regulations. You can qualify if your home is the:

• Exclusive and regular place for conducting business

• The primary place for any business related meetings and gathering

• Regular place of storing goods, supplies and equipments used for the business

If your business satisfies the above mentioned terms, then you may be qualified for home business tax deduction.

Deductions you may be entitled to Claim:

1)     If there is an area in your home that is designated for business purposes then you qualify for the home business tax deductions. The designated area for business within the residence must be regularly used and not just occasionally or incidentally. In such an event you will have the ability deduct expenses like heating/electric costs for that portion of your home, interest on mortgage for that portion of your home, stationery (pens, pencils, notepads etc.) and decorations used in that part of your home.

 2)    You should also be able to deduct expenses for equipment that you use for your home based business. This includes but is not limited to personal computers (PC), Cell Phone/Phones, automobile (car, truck, van).

 3)    You may be able to deduct business travel expenses when attending company conventions or traveling to meet prospects and business associates. These expenses include gas, airplane tickets, hotel expenses, meals, car rental expenses etc.

 4)    You should be able to deduct business related expenses like monthly auto-ship of product, lead management system fees, mlm leads cost etc.

Many home based business entrepreneurs fail to recognize their right to claim the above mentioned deductions, which could save them 1000’s of dollars each year.

Please consult your tax advisor before acting on any of the above recommendations.

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One Response to Did you Claim your Home Business Tax Deductions?

  1. Great money saving article!

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