How Many Tax Return Deductions Did You Lose By Not Having A Home Based Business?
There are many tax deductions available for those who have a home based business. If you have a home business, it is important to maximize your tax deductions. One deduction many forget to claim is the Home Office Deduction.
The Internal Revenue Service states in order to claim the home office deduction, you must use part of your home exclusively and regularly as your principal place of business or to meet patients or customers in the normal course of business. The amount you can deduct deduct depends on the percentage of your home used for business. According to the IRS, “If you are self-employed, use Form 8829, Expenses for Business Use of Your Home to figure your home office deduction and report those deductions on line 30 of Form 1040 Schedule C, Profit or Loss From Business.”
Once you home is established as a place of business, you can also deduct mileage every time you drive to the bank to deposit checks or fees, drive to visit a customer or pick up supplies necessary for your business. It is vital that you keep a log of your business driving for tax purposes.
Business related travel is also tax deductible including all expenses from your drive. Gifts given to customers are also 100% deductible. Tax programs like Turbo Tax, TaxAct and H & R Block make it easy for home based business owners to claim the deductions.
I am Lynette Henk, self employed home based business owner as a XO Healthy Chocolate distributor. I can be reached directly at (877) 208-8172, at my email [email protected] or my website LiveForChocolate.com.