Make Deductions When Working from Home

Working from home lets you be your own boss and create your own schedule. You can also deduct some of the money you spend running your business.

Deducting Home Office Expenses on Your Taxes

Running a business from home takes a lot of time and money too. You will generally spend money on operating costs, supplies and equipment. When you file your taxes, you have the right to deduct a portion of those expenses. Working with a licensed accountant is the best way to see just how many deductions you can take.

Home Office Expenses

While you can deduct some of the money you spend on your home office, you can only do so if you have a room specifically dedicated to your home office. If you use the room for anything beyond work, you cannot consider that space as a home office. Those who work in their bedrooms while watching television or in a spare room that also functions as a guest room cannot take this deduction. You will need to determine how much of the utilities that you use every year relates to the home office as well. As long as you know how much of those utilities you use, you can deduct a portion of your water, gas, electric and even Internet bills.

Other Expenses

Anything you buy that directly relates to your home office is an expense you can deduct. This includes printer ink, printer paper, pens, pencils and other office supplies. You can also deduct the bills for a cell phone that you use specifically for your business and any equipment you buy for your company such as a new laptop. If you buy and sell products from home, you can also deduct the amount that you spend on those products. Speaking with a Henderson CPA help you make sure that you get the maximum deductions and that you deduct everything you possibly can.

Running a Home Business

Running a home business is a good way to make money from home without working a traditional 9 to 5 job. Working with a CPA ensures that you get all the deductions you can when it comes time to file your taxes.