Overlooked Tax Deductions for Home Businesses
The Dreaded 1040 Tax Form
Tax Deductions for Home Businesses
I have worked for both the IRS and a well-known tax preparation agency. I have lived and done business in several states. And I have worked from home. Suffice it to say that I have more than average experience with preparing taxes and working at home. With that said, there are a few tax deductions that home businesses can take that many people forget.Of course, still consult with a tax expert before claiming home business tax deductions. These are just reminders to see if you qualify for the tax deductions. Here are a few legitimate tax deductions for home businesses that you may have overlooked.
Commonly Overlooked Tax Deductions for Home Business
Business software is completely tax deductible for home businesses. Any software that is bought for productivity or business purposes can be deducted. This includes money management software, tax software, word processing programs, any graphics programs that are used professionally, or other specialized software used for business purposes.Don't forget to deduct your Social Security contributions. Well, you get to deduct half. Any Social Security that you pay on self-employment income counts. Also, deduct contributions made to a retirement account for the self-employed, such as a Keogh. Deduct for the cost of office furniture. Most people remember to take off tax deductions for office items like paper and printer supplies. But remember that anything bought for your office is a tax deduction. If you get a new leather desk chair or buy nice oak bookcases for your home office, these are also deductible. Be careful with home office deductions, though. By all means use it if you qualify. But the IRS is very specific with regards to what qualifies as a home office. If your home office also houses a second television that the kids sometimes watch, you're on shaky ground. And it's up to you to prove that your deduction qualifies to the IRS, not the other way around. If you subscribe to magazines for the purpose of staying up to date in your business field, these are tax deductible. Also, deduct any books that you buy for your business or for educational reasons related to your business.
Don't Bother with Tax Deductions for Home Businesses Ever Again
Of course, the tax laws change frequently. Be sure to check any last minute changes made to the tax code before submitting your tax forms. And hey, if you don't want to be bothered with preparing federal income taxes anymore, elect Ron Paul. He wants to get rid of the IRS completely. (I know that this is just a pie in the sky dream, but I tried.)