If you are running a home business, it is important to remember that there are tax deductions for you when tax season rolls around. Of course, you do not want to try to fool the IRS (no one wants to run the risk of being audited!), but you do want to take advantage of those deductions that are rightfully yours.
Running your own home business takes much of the same expenses, effort, time, space, equipment, and travel as any other business.
Below are some home business tax deductions to remember as April is drawing near.
If you have a home office that is dedicated solely to your home business, you can add it to your list of home business deductions. The same goes for telephone charges, office supplies, furniture, software, subscriptions, and other equipment.
Do not fear an audit for making these home business tax deductions as long as these items are used exclusively for your home business.
If your business requires you to leave your home office, you can add the cost of travel, mileage, meals, entertainment, and anything else that goes along with the cost of living on the road to your home business tax deductions. During the year, make sure you keep documentation of your mileage, your trips, food, etc.
Also, when making home business tax deductions, you can also take into consideration insurance premiums (if you are self-employed and pay for your own insurance), the money you deduct for retirement, and half of what you pay towards your social security. And if your children are seventeen or younger and are working for you, you can deduct their salaries as business expenses.
This is just a quick scan of the home business tax deductions you can take advantage of. For more information, or if you have any questions please feel free to contact me!
Have a question of your own? Comment below or Submit them to [email protected] and write FAQ on the subject line, and I’ll be glad to answer them! 🙂
Author: Rosy Conde, CPA
Rosy Conde is a financial coach and business strategist with a passion for learning and helping others by offering business and financial advise and tips. She serves as a guidance in helping passionate entrepreneurs, who have a desire to launch and run their own successful business in today's modern world.