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GreatFX Business Cards Small Business Buzz The Right Way to Write-Off Business Expenses (Part 2)
Small Business BuzzThe Right Way to Write-Off Business Expenses (Part 2)
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PART 2 – HOME OFFICE AND MISCELLANEOUS
As a continuation of yesterday’s post, below are some additional tax deductions you should handle carefully.
Once you have the measurements, figure out what percentage of your home is dedicated to your business. You can then write-off that percentage of your mortgage/rent, utility bills, etc. Keep in mind, however, that this area of your home must be used exclusively for your business. If it is, in any way, used for personal matters (i.e., your home computer is used for both business and personal), then you cannot right off percentages of your household bills.
Another option would be to invest in a laptop that you use for business purposes only. This will allow for the entire expense of the laptop to be deductible.
However, if you use the phone for both, then you will have to be sure and get an itemized bill from the phone company and indicate which calls, both incoming and outgoing, were business related. It’s a good idea to also indicate which client each call was related to.
The best and easiest way to avoid extra time and effort is to simply purchase a separate cell phone or get a separate phone line in your home for business calls only. If you opt for the separate cell phone, you can also write-off the phone itself.
These are just a handful of the vast expenses that you might be able to write-off each year. It’s a good idea to consult with a professional accountant if you are not familiar with all the regulations. It’s better to spend a little extra money getting some help the first few times than to make a mistake and get audited.
The Right Way to Write-Off Business Expenses (Part 1)
Moving from a Home Office to a Commercial Space
Building Your Office
How to Secure Your Business Against Computer Viruses
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Ways to Save on Technology in 2008
What IRS Auditors Look For
3 Ways to Pay Less for Technology
Business Trends in 2007
Scheduling Time to Relax
By Michelle Cramer
Tuesday, November 6th, 2012 @ 6:00 PM CDT