Waypoint Realty Group LLC



Posted by Waypoint Realty Group LLC on 9/28/2017

Major corporations arenít the only entities that save big on taxes each year. As someone who works from home, there are deductions that you can take that could save you lots of tax dollars. Home office tax deductions change. For this reason, itís important to stay current on allowable deductions. Itís also important to keep detailed records and receipts.

See if you qualify for these home office deductions

Your greatest tax savings will probably come if you are a sole proprietor, meaning that you operate your own business out of your house. Following are general deductions that you could be eligible for:

Usage of part of your home - To take this home deduction, you must use a portion of your home solely to conduct business out of. You could also be eligible for the deduction if you meet with customers at a place in your home. Examples of this include operating a daycare or a hair salon out of your house. A room that's attached to your house could also qualify as a deduction if this room is used for business.

Maximum home deduction - Your home deduction generally cannot exceed the amount of income that you generated through your home based business. If your deductions exceed the amount of annual revenues that your business generated, you may have to reduce the amount of deductions that you file.

Forms - The Schedule C and Form 8829 are two documents that are used to file home deductions. Form 8829 is used for regular home deductions.

Office supplies - In addition to taking a deduction for using a portion of your house to conduct business, you could deduct office supplies like the cost of a printer, computer, office desk, chair, filing cabinets and ink and paper. Mailing envelopes and file folders are other types of office supplies that you may be able to use as a deduction.

Travel - Flights to meet with clients and prospects or to speak at business conferences could qualify as a deduction. As a safeguard, keep a copy of the event brochure or itinerary with your flight, hotel and meal receipts. Additionally, you might be able to deduct mileage costs. Again, the travel needs to be used to conduct business.

Marketing - Keep receipts of money that you spend to market your business. These expenses could be deducted from your home business revenues. Included in marketing deductions is the cost of postage stamps. Consider working with a reputable tax preparer to review deductions before you take them.

As with any tax deductions, check with the IRS to confirm that you are eligible for a home office tax deduction before you take the deduction. Make sure that you have a record that confirms a purchase you made before you list it on your tax return. Also, ensure that you use the proper tax forms. For example, if you were paid to perform services for a client, you may need to file a 1099 Form. You also make need to file a Schedule C to list out your home office deductions.







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