One of the advantages of working from home is the tax benefits you can claim. Working your home based business allows you to deduct parts or all of some bills that you are already paying to live there. For example Internet, phone, furniture, mortgage interests (but not the actual mortgage itself) and maintenance costs.
In some cases even parts of your water and power usage.
To claim these expenses, you need to be working out of your home and opperate your own business. If you have a home office set aside and clearly outline it as such, it will be easier to claim these tax deductions.
A good way is to calculate the actual percentage of your office compared to the rest of your home, which will then allow you to deduct a portion of your expenses.
For example, if your home office takes up 10% of your house, you can deduct 10% of your electric bill for the days you work. So if you happen to work your home business 3 days/week you can calculate the percentage of these days over a certain period compared to your electricity bill and then deduct this cost. In general, you can claim the portion of expenses that directly relates to your business.
The tax benefits of operating a home based business enables you to deduct things you would otherwise be paying in full. If you are considering a business from home, then this can help you to lower your costs. This is just one of the advantages that working from home offers everyday people.
If you're new here, you may want to subscribe to my RSS Feed. Thanks for visiting! And please feel free to comment. Top commenter's will go into my weekly Link Love Pot
No comments yet.