| Thanks to the convenience of the web, more and | | | | However, if your home office is the place from |
| more small business owners are finding it easy to | | | | which all your business activities are based, then |
| work from home offices. As you may know, | | | | you do qualify. This is simple for a lot of people, |
| small business owners can take advantage of a | | | | but if you have an external office, things can get |
| set of tax deductions relating to business | | | | complicated. |
| expenses. However, when it comes to making | | | | Deductions |
| deductions for expenses relating to your home | | | | So, now that we've established which home |
| office, things can get tricky. The deductions are | | | | offices are eligible for deductions, what can you |
| definitely available, but you may have to take | | | | deduct? |
| certain steps to make sure that you can get | | | | · All expenses relating directly to your home |
| them legally. | | | | office: This includes expenses relating to painting, |
| A space devoted to work | | | | cleaning, remodeling, etc. |
| First of all, in order to be able to claim deductions | | | | · Electric and phone bills for your home office: If |
| for many aspects of your this type of office, you | | | | you use your phone for non-business purposes, |
| need to have a space that is devoted exclusively | | | | then it doesn't qualify. With your electricity, |
| to your business. And when the tax code says | | | | calculate the percentage of your home's square |
| exclusively, the IRS really means it. If your office | | | | footage that your office takes up, calculate that |
| at home doubles as a living room, dining room, or | | | | percentage of your monthly bill, add it up for the |
| bedroom, or if it is used for sleeping, watching | | | | year, and deduct that amount. |
| TV, or anything else, then it does not qualify for | | | | · Rent or house payments: As with the electric |
| deductions. | | | | bill, you'll need to know the percentage of your |
| Of course, getting over this hurdle is not difficult. | | | | home's space that your office takes up. Apply |
| Even if you place your office in a room that is | | | | that ratio to your rent or house payments, and |
| devoted to other purposes, you can set aside a | | | | deduct that much for the year. If there are any |
| square of space that is exclusively for work. | | | | rooms that are primarily used in relation to your |
| Once you do so, you'll want to measure out the | | | | home office (for example, an adjacent bathroom |
| dimensions of your work area so that you can | | | | or a closet), don't forget to enter these into the |
| properly claim your deductions. | | | | calculations. |
| Your principle place of business | | | | · Fees relating to your business: Depending upon |
| Second, it's important that your office at home | | | | what type of business you're involved in, you |
| serve as your principle place of business. If you | | | | may have to pay fees to various entities. For |
| use your home office for a few occasional tasks | | | | example, if you're a freelancer, you may have to |
| to supplement your primary work, which is out of | | | | pay fees to the service that connects you to |
| the home, then you don't qualify for deductions. | | | | clients. These can be deducted. |