Great Tax Deductions For Home Businesses You May Not Be Aware Of
If you think that great tax breaks are just for big corporations think again.
As a home business owner you have a number of things you can deduct, some that you may not be aware of.
Most home business owners are aware that they can deduct their home office itself, provided that it is an area that is used exclusively for business (it need not be a room.
) In addition you may be able to claim a portion of any home repairs you make although not at Extreme Makeover levels; the IRS allows taxpayers to deduct reasonable costs associated with maintaining the home in which your business is based.
If meetings with clients or customers are a part of your business then expenses related to those occasions may be a source of deductions as well.
Meals, drinks, even the cost of gas you used (or plane ticket, rail ticket etc.
) can all be written off.
The premiums paid for most common insurance types provide even more deductions, including any medical insurance you may have taken out for yourself.
Are you in the unfortunate position of having a client that owes you money? Then you may be able to claim the amount that you are owed as a deduction as well, provided it was previously reported as gross income.
And if you are in your first year of business do not forget to deduct all those start up costs, such as any new equipment you purchased and the costs associated with incorporation.
This article only scratches the surface of course, a licensed tax specialist can probably find you many other home business tax deductions not mentioned here as well as help you ensure that the deductions you claim would stand up in the event of an audit.
As a home business owner you have a number of things you can deduct, some that you may not be aware of.
Most home business owners are aware that they can deduct their home office itself, provided that it is an area that is used exclusively for business (it need not be a room.
) In addition you may be able to claim a portion of any home repairs you make although not at Extreme Makeover levels; the IRS allows taxpayers to deduct reasonable costs associated with maintaining the home in which your business is based.
If meetings with clients or customers are a part of your business then expenses related to those occasions may be a source of deductions as well.
Meals, drinks, even the cost of gas you used (or plane ticket, rail ticket etc.
) can all be written off.
The premiums paid for most common insurance types provide even more deductions, including any medical insurance you may have taken out for yourself.
Are you in the unfortunate position of having a client that owes you money? Then you may be able to claim the amount that you are owed as a deduction as well, provided it was previously reported as gross income.
And if you are in your first year of business do not forget to deduct all those start up costs, such as any new equipment you purchased and the costs associated with incorporation.
This article only scratches the surface of course, a licensed tax specialist can probably find you many other home business tax deductions not mentioned here as well as help you ensure that the deductions you claim would stand up in the event of an audit.
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