Tax Deductions For Your Home-Based Business

The following is a list of tax deductions you may take for home-based businesses. You can deduct a percentage of many expenses based on how much of your home you can qualify for a home/office deduction. For example, if you have a 2,000-square-foot home and a 200-square-foot office, you could deduct 10% of many expenses.

Here are the most typical deductions:

• A percentage of rent, if you rent or lease.
• A percentage of your mortgage interest, if you�re buying your home.
• A percentage of real estate taxes and homeowner association fees.
• Household supplies and cleaning services for the business portion of your home.
• Repair and maintenance of your home office.
• Utilities (electricity, gas, water) attributable to the business use of your home.
• Trash collection.
• Furniture in your household that you convert for use in the home office.
• Phone services, minus the base local service for the first line into your home. (Lines devoted to the Internet and faxing may be entirely deductible.)
• Business use of your automobile from the time you leave your door.