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Recession Survival - Home Based Business Tax Advantages by Anne-Marie RONSEN





Recession Survival - Home Based Business Tax Advantages by
Article Posted: 01/13/2009
Article Views: 402
Articles Written: 737
Word Count: 523
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Recession Survival - Home Based Business Tax Advantages


 
Tax,Business,Small Business
You already know how wonderful it can be to work from home, but do you realize how many home based business tax advantages exist? Here in the United States, many people operate home based businesses just to take advantage of the numerous tax deductions.

Claiming the use of your home in your business can give you some hefty deductions on your tax return. As with anything tax-related, you must meet certain requirements determined by the Internal Revenue Service. However, if you use one room or part of a room specifically for your business, you can receive a significant home based business tax deduction. This can include portions of your utility bills specifically related to that area of your house as well as any relevant home improvements.

Your phone and other office services can also provide you with a substantial home based business tax deduction. If you maintain a separate fixed phone line or cell phone specifically for your business, then all costs related to those phone lines can be tax deductible. However, if you use equipment or services in both personal and business environments, it is more difficult to establish a tax deduction. It’s not impossible, but you must meet some fairly strict requirements and maintain good records.

Using your car in your business gives you the potential for another good home based business tax deduction. Of course, you must keep excellent records but you can deduct mileage and car-related expenses that you incur while conducting your business. With any type of business, other incidental costs come up. You can also take deductions for purchases of items such as office supplies, postage, advertising materials and expenses. You can potentially deduct even more by hiring your children or spouse to work as employees for you. This enables you to deduct health insurance premiums and other typical employee-related expenses.

In order to find out about the many home based business tax deductions available to you, consult an experienced tax advisor. With proper advice and good recordkeeping, your home based business can become even more successful.

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Copyright © Anne-Marie Ronsen

You have permission to publish this article electronically, in print, in your ebook or on your web site, free of charge, as long as the author bylines are included.

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