The at-home business has become really popular over the years. It offers people an opportunity to generate an extra source of income right from home. By taking advantage of some home business deductions, you could significantly lower your year-end income tax bill when you file your taxes.
Like any business, the home business has its expenses, but many of them you may have paid before the business was started. Things like rent or mortgage, internet or a phone line are an everyday occurrence in any home budget. The IRS draws a fine line between personal and business expenses when it comes to a home business. But some of those personal expenses may still qualify as home business deductions.
What’s Your Business Percentage?
If you qualify for the home business deductions, your first step is finding out your home business percentage. You’ll then use this percentage to figure out the business part of those normal home expenses. The IRS uses two examples to finding out your business percentage: Continue Reading…