Deduct for your Home Office, Similar Expenses
Do you work from home? If so, this will work to your advantage when filing your income tax this year. Even though there are some negatives of working at home when it comes to your taxes, there are many positives also. And one of the biggest ones is that you will have many expenses that can help to lower your burden.
The first thing that you will want to look into deducting is the space in your home that you use to work. Obviously, if you have one room that is nothing more than your office this will work out much better. It is always easier to deduct this expense when you are not sharing the space with things that you do on a personal platform.
Moving on, do you have the internet? If you work at home the answer is probably yes. Again, this is an expense that you will be able to deduct. While you may not be able to deduct the entire cost, a certain percentage will be possible. You will have to make an estimate of how much time you use the internet for business as opposed to personal surfing.
Finally, do not forget about anything that you purchased for your home office. Did you buy a new desk, computer, or printer? If so, you can deduct any or all of these expenses.
As long as you are honest and have receipts to back you up, there are many home office deductions that you can take advantage of this year. If you are confused about what is legit, you may want to have a professional help you file. They will be able to tell you what you can deduct, while hopefully adding a few more ideas of their own!Â
January 16th, 2008 at 10:04 am
[…] unknown wrote an interesting post today onHere’s a quick excerptDo you work from home? If so, this will work to your advantage when filing your income tax this year. Even though there are some negatives of working at home when it comes to your taxes, there are many positives also. … […]
January 22nd, 2008 at 9:53 am
[…] square footage. Check out a more comprehensive list of home-based business tax benefits here. Posted in tax benefits, Real Estate | « Your Home’s Hidden Tax Benefits, Part […]
June 6th, 2008 at 10:43 pm
[…] Lastly, the home-based business is a significant tax shelter as well. Self-employment taxes can be overwhelming, but basing the business in your home allows you to deduct much more than the obvious business-related expenses. In addition to office equipment and supplies, you can deduct a portion of the monthly utilities and phone and Internet bills. How much of your monthly bills can be used as a tax deduction is directly related to what percentage your office space comprises of your overall home’s square footage. Check out a more comprehensive list of home-based business tax benefits here. […]