6 Home Business Tax Deductions To Take Advantage Of

6 Home Business Tax Deductions To Take Advantage Of

There is no question there is a plethora of benefits to starting your own business. This is precisely why the internet is being flooded with entrepreneurs looking to start their own business. One of the many benefits to owning a small business is the numerous tax deductions available. Here are six home business tax deductions for you to take advantage of.

1. Office

It all starts with your office, which is not an automatic IRS audit if you follow the rules. Your office must be in a separate room and not the corner of a living room. In order to claim your office as a home business tax deduction, you want to find the square foot percentage of your office in relation to the rest of your home. You can then use this for deductions on rent, electricity, insurance, internet service and much more.

2. Supplies

Anything that you can think of that you use for your business can be deducted. 100 percent of the supplies you use for office use is deductible. Make sure to keep all of your receipts for your records.

3. Furniture

Believe it or not, furniture has been added to the list of home business tax deductions allowed. You can deduct 100 percent of all office furniture without having to depreciate it over several years.

4. Computer equipment

As you could have probably guessed, you can deduct 100 percent of computer equipment as well without having to depreciate it. This is where new computer purchase or computer equipment can come in handy. Don’t be afraid to branch out just because you cannot afford it. Take advantage of the tax breaks and get something nice for the business.

5. Business vehicle

If you do have a home business that requires the use of a vehicle, you can claim the actual mileage you use for the business. It does require accurate and extensive record-keeping in order to take advantage of this home business tax deduction. As of 2008, the mileage rate is 50.5 cents a mile for business use.

6. Telephone

Running a home business will certainly require the use of a telephone. In order to take advantage of this, you want to use either a cell phone or install a second line to keep records. This is by far the safest and easiest way to keep track of things without getting your family line mixed up.

There are several home business tax deductions that you can take advantage of as an entrepreneur. These are just a few of the numerous deductions you can benefit from as a home business owner.