3 Great Tax Deductions For Your Home Based Business
Many people who work from home don't take all the tax deductions they are entitled to. Maybe because they think they are too complicated, or don't apply to them. But the savings from these tax deductions alone can be substantial. They will most certainly pay for professional tax preparation. So don't let a lack of knowledge keep you from taking these lucrative tax deductions for home based businesses.
1. Home Office Expenses You don't have to have a separate room with a door. Any space in your home that you use regularly and exclusively for business can qualify you for the home office deduction. If you qualify you will be able to deduct a portion of your housing costs, rent or mortgage interest, utilities, and even some home improvements.
2. Auto Miles For 2009 you will be allowed to deduct 55 cents for every business mile that you drive. That can add up quickly! Commuting miles don't count as business miles, but because your commute is just down the hall you will be creating a tax deduction the minute you leave your driveway!
3. Computer and Internet Connection You may be able to deduct a portion of the cost of your computer, and your internet connection. You will need to keep a log showing how much of the time you use your computer and internet connection for business, and how much of your use is personal.
Now all of these deductions will require some research to make sure that you follow all of the IRS's requirements, however, by taking every deduction you are entitled to you will save yourself a lot of money at tax time.