Home Business Tax Deductions

Home business tax deductions are just one reason (of many!) that a home based business is so attraction. Home businesses are blessed with a variety of tax write-offs. Expenses that you have to pay anyways become deductible.

Tax laws vary depending on where you live. Talk to your accountant about your individual situation and which expenses you may be able to deduct.

Possible Deductions:

Some possible deductions include the business portion of various household expenses. The "business portion" refers to how much of your home you use for your home office. Check with local authorities to determine whether there is a maximum size limit to the space you claim as an office. You may be able to claim the business portion of your:

• Mortgage interest.
• Utilities (heat and electricity).
• Property taxes.
• Home insurance.

In addition to the business use of home expenses above, you may also be able to deduct:

• Meals and entertainment for business reasons.
• Business travel expenses.
• Office supplies.
• Advertising costs.
• Equipment you purchase for use in your business, such as a computer.

Home business tax deductions can vary widely from situation to situation. Consult your local tax office, an accountant, or a tax consultant to determine which expenses are deductible in your specific circumstances.

In this section:

Getting Started

• Home Business Considerations
• Debunking the Myths
• What Type of Business?
• Home Business Ideas
• Start-Up Checklist

Money Matters

• Tax Benefits
• Assessing Your Finances
• Financing Options
• Manage Your Money
• Bookkeeping

Doing Business Online

• Start an Internet Business
• Online Business Basics
• How-To Guide
• Freelance Opportunities
• Creating Your Own Product

Your Home Office

• Setting Up Your Office
• Establishing Rules