Good Small Business IDEAS from Home
You can take a home business tax deduction if your business meets certain criteria.
at home office image by Pix by Marti from Fotolia.com
Running your own business is an excellent way to make extra money, plus get one or more tax deductions in the process. Regular business tax deductions apply to home-based businesses and you could be eligible for the home office deduction as well. Home business owners are allowed to deduct a portion of their home's mortgage and utility costs as a business expense, when they meet the deduction criteria outlined by the Internal Revenue Service. The home office deduction is somewhat complicated, so it's best to consult with a professional tax adviser before taking the deduction the first time.
Service-based businesses are ideal as a home-based business, particularly when the services offered are knowledge or information based. Freelance writers, graphic designers and programmers are examples of home-based service businesses. Service professionals usually provide their own computer and Internet connection, telephone services, mail supplies and other business needs. These standard business expenses are business tax deductions, and if the business is run primarily from your home, you may qualify for the home office deduction as well. The IRS requires a home-based business to have a dedicated space in the home that's used the primary place for business. The area can be a detached building, such as a storage shed, or a spare space inside your home. The inside space must be used exclusively and regularly for business, but it does not have to be physically separated. According to the Small Business Administration, the space should be identifiable. It states, "...a workstation in the corner of a living room may qualify, but piling papers on your kitchen table would not."