Do You Qualify For Home-Based Tax Deductions?
New changes in tax laws have made it easier than ever to claim Home Office Deductions and keep more of what you earn.
If your home is a place of business, many of your personal expenses can be deducted as business expenses resulting in lower taxes.
You may be thinking, "I have an Accountant/CPA/Tax Preparer/Tax Software who knows all about tax deductions so I don't have to know anything about them."
There are several reasons why that thinking could be costing you thousands of tax dollars. Some of those reasons are:
ˇMost Accountants/CPA's/Tax Preparers do not "specialize" in Home-Based Businesses and do not keep up with ever-changing laws pertaining to them.
ˇYou are ultimately responsible for knowing what you can and cannot deduct as business expenses. Why? YOU are accountable to IRS for your deductions, not tax preparer.
ˇˇIf you pay someone to do your taxes you still need to know what you can deduct so that you can gather all relevant paperwork.
ˇˇThe most compelling reason: Getting greatest benefit from your deductions.
To qualify for these deductions you must meet 2 conditions, which most, if not all, Internet Marketers meet.
Condition 1: Do you work as an Internet marketer out of your home (on your "home computer)?
To qualify for deducting expenses related to using a workspace for business in your home, your home must be
Your "principal place of business " or you must use space only to earn your business income.
ˇUse it on a regular and ongoing basis to meet your clients, customers, or patients.
Condition 2: Are you in business to make a profit?
Whether you made a profit or not is immaterial. Even if you lost money but intended to make a profit these deductions are still available to you.