Home Business Tax Deductions
by: Mana Aroontut |
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If I told you that you could deducted some of the cost of your house as a business expense in your federal income tax return, would you? What if I told you that you were able to not only get the regular business deductions, but you could also deduct part of your utilities, home mortgage interest and repairs to your current home. All of this is possible as long as you know what home business tax deductions are legitimate.
Do you drive anywhere at all for your home business? In 2006 the federal government allowed 44.5 cents per mile as a deduction on your taxes. If you travel from your home to any location for business you are able to use it towards a home business tax deduction as long as you keep accurate records. Repairs, insurance, gasoline, and payments or lease payments are all deductions, but only for as long as you are using them for business and not for personal use.
You are able to deduct a portion of your home mortgage interest, but only the portion of your home that is used for business. For instance, if you have a 2000 square foot home and you are using a 200 square foot room for your office, you are able to deduct 10% of your mortgage interest. However, if you use this room for any other purpose, such as a guest bedroom, you are not able to consider it business space. If the 200 square foot room is a business area you are now able to deduct 10% of your home repairs, security systems, house insurance, real estate tax, utilities, and services like depreciation, phone, and trash removal.
More deductions that you are able to use as home business tax deductions are office equipment and supplies. This could be fax machines, computers, paper, software, etc. You are also able to deducted 100% of the office furniture the year it is purchased.
If you do any traveling you are able to deduct it, but if you take your family you are only able to deduct your portion. This means you need to figure how much the cost of a room for a single person is, how much you spend on your food, etc. If you do any eating or entertainment for your business you are able to deduct 50% of the cost.
The most important thing for you to be able to use all of these home business tax deductions is that you keep accurate records of all costs you are hoping to use. If you keep accurate records there is nothing stopping you from enjoying all of these tax deductions.
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About the Author
Would you like to have a real web site business? Mana Aroontut invites you to visit their full service marketing business website for everything you need to start and run your own online business. Their services include advertising, mentoring, and a full service training and support package to help guarantee your success. Learn more here: http://www.MillionDollar-Affiliate.com/pips.html
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