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If you are a small business owner or have a business that is based out of your home then there are several tax write offs you should be aware of . They are set up in a way that can help you with starting a business. You will want to be sure that you are writing off all that the business owner is entitled to.
A room that has one entrance and exit that holds the office equipment of the business is the home office. If you can go shut the door to that room and never use it except to work it is considered a home office. The deduction of a home office is based on the square footage of the office and then divided by the home’s square footage. Whatever that percentage comes to will be used to determine the deduction. If the percentage comes to 10% then you would deduct 10% of the mortgage, insurance, electric , and internet as a business write off.
Anything that is used to maintain the office such as business supplies, computers, printers, and business cards can be deducted. If you need the internet or already have one this can be deducted. A business phone can be deducted but you will need to have two lines. One of these will need to be used for personal calls and the other for business. If you have a meal or entertainment for business purposes you should keep the receipt and write who it was with so that you can write it off as a business expense. It is also advisable to keep track of any milage used for business purposes.
