More and more people are finding ways to telecommute or start their own home based business.
The greatest benefit of working from home is the ability to save you taxes by deducting expenses as tax season rolls around. However, if home office deductions isn’t done properly, you can be leaving money on the table so to speak.
Here’s what you need to know about home office deductions…
People used to be almost ashamed to admit that they worked from home, but no longer. It is a well accepted fact these days. The thought of combining work and quality family life is appealing to many.
Many people are also opting to start their own home based business as an alternative to working for an employer. Whatever your decision, whether telecommuting for an employer or starting your own home business, it is now possible to achieve.
The advantage of running a business from home is that you save on rent which is substantial and also get part of your running expenses set off against taxes. Your home based business will incur expensive operating costs just like any outside business. You are paying these costs anyway so it’s a bonus to be able to claim them as a tax deduction.
It is important to know however, you can only claim a home-based office deduction if it is exclusively used as a ‘head office’ of your business.
Get expert advice. The advice of an accountant should be sought where applicable.
Are you saving taxes with your home office?
About the author: Sonia Colon is writer/publisher of My Fashion E-Mall Blog, and biz owner at Books About Me. For additional powerful business articles and Internet marketing tips for maintaining a lucrative home business subscribe to her newsletter below.
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