Looking for Home Business Tax Breaks?
Home Business / Office Tax Breaks....
Working from home with an office in the home...are you aware of everything you can write off as tax expenses for having your office in your home??
...Here are a few more home business tax breaks and tax write offs for operating a business out of your home or outbuilding.....
You must use a specific area of your home for your home based business on a continuing basis.
The term home can mean a house, apartment, condominium, mobile home, boat or even a tent - lol!
It also includes structures on the property such as an unattached garage, studio, barn, or greenhouse.
The business part of your home must be one of the following:
Your principle place of business...
A place where you meet with patients, clients, or customers in the normal course of your business..
A separate structure not attached to your home you use in connection with your business.
The space does not need to be marked off by a permanent partition...(in my case, I have to have it partitioned off, as I have four kids at home yet, so my main office is in my bedroom, behind closed doors for the sake of privacy - lol!)
Here are a few examples
Jessicas story...
...She uses her family room to write legal briefs and prepare client tax returns.
Her family also uses the room for recreation.
Since Jessica does not use the family room exclusively in her profession, she can not claim a business deduction for its use....
Welcome to Lillian's Jewelry....
Her shop is located in her garage which is not attached to the house. She uses the garage for her jewelry business only.
In one part of the garage she puts her machines and worktables and inventory of gems and metals.In another part of the garage is a small showroom.
Lillian is allowed to claim a deduction for the business use of her garage.
The use is exclusive, regular, and for the business.
Also, the garage is a principle place of business and is a separate structure...Lillian is allowed to claim a deduction for the business use of her garage. The use is exclusive, regular, and for the business.
Peggy has an art studio in her home....
She is allowed to take a deduction for the business use of her home.
The rooms in her house are all about the same size. There are ten rooms and she uses one for a studio.
Peggy's business use percentage is 10%....She can deduct 10% of her utilities, rent, mortgage, etc...
Recordkeeping is vital when you have a home business....keep accurate recordsthat provide the information needed to figure your deductions for the business use of your home.
Keep all cancelled checks, receipts, invoices, and other evidence of expenses for the deductions you claim...
These are just some bits and pieces of info that I have picked up on getting more home business tax breaks and tax write -offs...
I would highly recommend finding a CPA that specializes in home business taxes, with any additional questions you may have...
Here is another page on home business tax breaks and tax write offs for you.
No one wants to pay Uncle Sam more than his share =)
Please refer to this website ...
for more home business tax breaks and tax write offs...
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