Work At Home Experts

Many people who work from home already know about tax deductions for things like office space in the home. Additionally, many know about tax deductions for office supplies for a home business. However, there are some less tangible, but equally important, business expenses that many people do not realize that they can deduct as part of their home business expenses. Here are a few things that you can deduct when the time comes to fill out your Schedules SE and C.

Internet usage

Do you use the Internet to conduct a great deal of the business from your home office? If so, you can deduct a portion of what you spend each month for that broadband connection. All you have to do is figure out what percentage of the time you use the Internet to complete your e-commerce transactions, and then deduct the amount paid. For example:

Your broadband Internet connection costs $50 per month. When the Internet is used, about 70% of the time it is used for your home business purposes. You multiply that: .70 x 50 = $35. Then you multiply that $35 by 12 to get your deduction for the year: $420.

Web hosting

If you have a Web site strictly for your home business and you pay for Web hosting, this can be deducted as well as a business expense. After all, you pay a monthly fee for the hosting. And, if you had to pay a fee for domain registration, that is also tax deductible in the year that you paid it.

Telephone use

In a process similar to figuring your deduction for Internet usage, you can figure out a tax deduction for your business phone use. Many people choose to get a separate phone line for the home office so that it is easier to keep track of the expenses related to this particular tax deduction.

As always, you should consult your accountant or a tax specialist to make sure that you are deducting eligible expenses. And you should keep careful track of your expenses so that you can more easily figure your deductions at the end of the year.