I figured I'd take a break from posting jobs, I mean, I have a thousand jobs to post..might as well save them up for later days!
Now before we go into more detail on Home Business Tax Deductions, you must know that the IRS sees your home office for your business, solely for your business. What that means is, the computer, the chair, the room, everything...must be used for your business and nothing else. The family computer cannot be used for your business, and nobody can use your business computer. If you want to write these things off for tax purposes, you must follow the rules encase a auditor makes a surprise visit!
Here are a few things that you can write off for Home Business Tax Deductions:
- Mileage - If you are on a business trip, doing a quote, or going somewhere for a meeting, anything business related..keep track of your mileage. These can be used as tax deductions. Keep good documentation on your mileage, dates, parking costs, repairs, payments, leases, insurance. If your business is at home, the mileage starts when you leave the driveway, if your business is elsewhere, the mileage starts after you reach your business. They don't cut you a break for driving to work! Also, make sure you keep a note for the reason of your destination.
- Travel, Entertainment, & Meals - If your home business requires alot of traveling, then you have got it made! The plane,rail,car,bus and hotel is 100% tax deductible! The only exception is eating out...thats only 50%.
- Office Supplies - Pens, paper, ink, coffee maybe? Hang on to all receipts for office supplies for tax time! They probably will come in handy!
- Software & Subscriptions - Off the shelf software and magazine subscriptions can be fully expensed in the year spent.
- Retirement - If you are putting forth contributions for your own retirement, make sure you deduct it for your personal income-tax return.
- Telephone Bills - Print out all 12 telephone bill statements, and circle the business related calls. Deduct 100%, but these are only for the business relate calls.
These were just a few deductions that I found at BankRate.com. Don't use this as a guide for tax time. You really need to talk to your tax adviser for exact details, plus additional tax deductions that are available.
