Read these 2 Taxes Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Small Businesses tips and hundreds of other topics.
Over the past few years, the IRS has made it easier for home-based business owners to deduct the business use of their homes.
Keep in mind the following when thinking about deducting business use of your home:
To qualify to claim expenses for the business use of your home, you must meet the following tests.
1.Your use of the business part of your home must be:
a.Exclusive (however, there are exceptions to exclusive use),
c.For your business, AND
2.The business part of your home must be one of the following:
a.Your principal place of business,
b.A place where you meet or deal with patients, clients, or customers in the normal course of your business, or
c.A separate structure (not attached to your home) you use in connection with your business.
For full details on what you can deduct and how to deduct it, see IRS Publication 587-Business Use of Your Home.
Here is a short list of some common business deductions. Check IRS Publication 535-Business Expenses to see if you qualify for these and other deductions.
Donations to business organizations.
Licenses and regulatory fees.
Penalties and fines you pay for late performance or nonperformance of a contract.
Repairs that keep your property in a normal efficient operating condition.
Subscriptions to trade or professional publications.
Supplies and materials.
|Sheri Ann Richerson|