Running a business from your home can net you several valuable tax deductions.
The tax code makes several tax deductions available for people who run a home business. When taken advantage of, these deductions can significantly reduce the cost of running a business from your home.
The one thing you have to be hyper conscious of, however, is to keep your personal expenses and your business expenses separate. You cannot deduct living, or family expenses. Doing so will be a huge red flag for IRS auditors.
Working from home often blurs this line, especially when expenses are legitimately both personal and business-related. If this is the case, you can deduct the portion of the expense that was used for business. (more…)
