Tax deductions for a home business

[MiaMurphy]

Hey everyone
Need a little advice...
What kind of things can you deduct from your taxes if you have a home business? I've been told a few things but I would like some more input.
Thanks
Mia

[GG9909]

I think your best bet would be to start with your local Small business development center where you'll find great resources to help you sort and organize your business over all I only suggest this because every business is not treated the same therefore may have different priviliges. Good luck!

[LillianRose]

You can go straight to the source. The IRS website has a section devoted to home-based business and home-based business deductions.

I don't have the link offhand but I wrote an article for Yahoo Associated Content which discusses this.

If you can't find the info, PM me or post a reply here and I'll dig it out.

[jiminic2]

Other than the normal business deductions (office supplies, contractors, etc.) you are allowed an "office in home" deduction. Although this sounds great, you need detailed records of how the room is used, the square footage of the room divided by the square footage of the home. This is so you can allocate property taxes, utilities, mortgage interest (or rent). However, the IRS really cracks down on these deductions, so be sure you have detailed written records of each deduction for office in home. As mentioned above, check out the IRS guidelines for more detailed info.

[jamhall830]

You really should consult a tax professional. That being said according to my tax guy can write off a percentage of home bills based off the size of your "home office" this includes internet, utilities etc.

[Alison728]

One of the previous posts mentioned the IRS website and she is right, there is a ton of information there that you will find helpful.

You should consult a tax adviser for specifics but the site will give you a basic understanding of what you are entitled to deduct so your conversation with a tax adviser will be shorted and of more benefit.

[81charduck]

I've been deducting a percentage of my mortgage, utilities, etc, in addition to the normal "business" expenses. However, every business is different and everyone's tax & financial situation is different, so what I can or cannot deduct may not be the same as what you can deduct.

Referring to the IRS website will likely be a good starting point, but I absolutely agree that you should contact a tax professional to be certain what deductions you can take.

[Amy Jacobs]

Originally Posted by 81charduck

I've been deducting a percentage of my mortgage, utilities, etc, in addition to the normal "business" expenses. I absolutely agree that you should contact a tax professional to be certain what deductions you can take.

I deduct the same things I take everything to my tax lady and she does it for me. Definitely speak to a professional you dont want to miss any deductions your entitled to.