Tuesday, September 28, 2010

Home Office Tax Deductions

Working from home sounds great, doesn't it?  Get up in the morning and walk to your home-office space with a cup of coffee and get to work. Approximately 60 million people regularly do this very thing!  But did you know that only a tiny fraction of these entrepreneurs claim all of the deductions that are allowed on the federal income tax returns?  I HATE the IRS as much as you do.  And believe me, they are out to punish those who dare to start their own business.  But it's a game, and the trick is to beat them at their own game... by using their rules.

Your home-office space and tools are at the core of your allowable deductions, and you need to keep good, tight records to back it all up.  But if you work exclusively at home, then a whole lot of other stuff factors in as well - especially if you are incorporated.  It doesn't matter what the nature of your business is.  Network marketers, MLM'ers, consultants, free lance writers, etc., can qualify for these tax credits.  You just have to study up, get good tax advice and take advantage of it.  For example, did you know that a home-repair can be a tax deduction for your home-based business?  Depending on the exact circumstances, it certainly can be!  What about your phone and Internet bill?  You betcha'... and that's just the beginning.

For those of us who work from home and love the lifestyle, squeezing the maximum benefit from the IRS tax code is simply a must.  You MUST understand how to do it, since it figures into your income!

No comments:

Post a Comment