Some Say Home Business Deductions Are Unlimited
It’s imperative to keep your business and personal finances separate. This is easily accomplished by getting a business checking account and a debit card associated with this account. Keep all of your receipts and organize your finances.
Now there are real and viable business expenses you can write off and a basic question to ask yourself when you’re making this decision is:
"Is this an expense I would incur if I were not in business?"
Typical real expenses can include:
• Your computer
• Business operating and account management software
• Rent
• Employee salaries
• Money paid to independent contractors
• Advertising costs
• Business phone bills
Home-based business owners are able to claim some expenses on their income taxes that non-home-based business owners can't, such as home heating costs and the cost of cleaning the home (percentage calculated based on actual business use.)
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