Tax Advantages in a Home Business-2

Hi! Welcome to my blog! Today I am continuing from my previous post on Tax Advantages for your home business. One of the items to consider today is: Will your home owner's insurance cover the property and liability involved in your new business? You definitely must have an answer to that question, so be sure and talk to your insurance agent. (If you rent you can get renters insurance)

One of the beauties of engaging in a home business is tax deductions. To be eligible for business related deductions, you must use that part of your home claimed as the place reserved to meet patients, clients or customers. If you use your den or spare bedroom as the principal place of business working there from 8:00 to 5:00 every day, but permit your children to watch TV in that room during the evening hours, the IRS dictates that you cannot claim a deduction for that room as your office or place of business.

To be eligible for business deductions, your business must be an activity under taken with the intent of making a profit. You can deduct business expenses such as supplies, subscriptions to professional journals, business use of your car or truck, home related business expenses such as utilities etc.

You must keep proper records and take care not to mix business and personal matters. Well, my time is up...stay tune for more upcoming post.

Enjoy!