Home Based Business Tax Advantages

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. Its 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.

                                                                                                            - Mohammed Zahran -