|By Karin Workman
|Do You Qualify For Home-Based Tax
New changes in the tax laws have made it
easier than ever to
claim Home Office Deductions and keep
more of what you earn.
If your home is a place of
business, many of your personal
expenses can be deducted
as business expenses resulting in
may be thinking, "I have an Accountant/CPA/Tax
Preparer/Tax Software who knows all about tax deductions
I don't have to know anything about them."
There are several reasons why that thinking could be
you thousands of tax dollars. Some of those
·Most Accountants/CPA's/Tax Preparers do
in Home-Based Businesses and do not keep
up with the
ever-changing laws pertaining to them.
·You are ultimately responsible for knowing what you
and cannot deduct as business expenses. Why? YOU are
accountable to the IRS for your deductions, not the tax
··If you pay someone to do your taxes
you still need to
know what you can deduct so that you can
compelling reason: Getting the greatest benefit
To qualify for these deductions you must
meet 2 conditions,
which most, if not all, Internet
Condition 1: Do you work as an
Internet marketer out of your
home (on your "home
To qualify for deducting expenses related
to using a
workspace for business in your home, your home
Your "principal place of business " or you
must use the
space only to earn your business income.
·Use it on a regular and ongoing basis to meet your
clients, customers, or patients.
Condition 2: Are you in business to make a
Whether you made a profit or not is immaterial.
Even if you
lost money but intended to make a profit these
are still available to you.
answered yes to both of these questions then you do
Home-Based Business and as such you are qualified to
deduct Business Assets, Direct and Indirect Expenses.
Business Assets include business equipment such as
fax machines, business furniture such as desk
room table for instance), desk chair and
These are 100% deductible if they are
used "exclusively" for
assets are not used "exclusively' for business the
you can deduct is proportionally related to how much
things are used in your business. It is possible to
a portion of your living room, sofa, DVD player etc
meet certain conditions.
Direct Expenses are those
directly related to conducting
your business. This would
include office supplies, telephone
phones, ISP service, hosting, advertising
expenses are generally 100% deductible.
Expenses include such things as rent on your home,
utilities including heating and air conditioning and
repairs such as replacing a roof or repainting the
of your home.
These are authorized legal
deductions passed into law
specifically for Home-Based
Businesses by congress.
If you use your home for
business purposes, many of your
personal expenses can
legally be converted into deductible
including utilities such as heat and
materials, house insurance and
Learn all you can about what you can deduct and you
consistently save thousands on your income tax each
"I'm proud to pay taxes in the United States;
the only thing
is, I could be just as proud for half the
|©2004 By Karin Workman, A 30-year
veteran Home-Based |
Business Owner who specializes in Tax
Home-Based Businesses. Karin also wrote
the Hot New Ecourse:
"Reap the Rewards!" Designed to help
you save tax dollars
and put more money into YOUR pocket.
The course is Free so
do yourself a favor and subscribe