Tax Reductions Are Just One of the Benefits of Working at Home

Would earning tax reductions be a good thing for you? As a home-based business owner or an independent contractor this is one of the benefits waiting for you? Here’s a quick look at some of the perks:

General Office Supplies and Equipment

Items which are used to do your job are also deductible. This includes office supplies, your personal website, phone service, office furniture, computers, copiers and fax machines. You are allowed up to $17,500 a year for such deductions.

Automobile

The cost of maintaining your automobile can be a large deduction, especially with the cost of gasoline these days. The amount of the deduction for fuel and maintenance of your car depends upon what percentage of usage is for business.

If you have two cars and one is used exclusively for business, 100% of the cost of the car used for business is deductible, including gas, oil, repairs, insurance, licensing, parking, etc.

Food and Entertainment

These costs are deductible if you are spending time with existing or potentially new clients. Travel Expenses: Hotels, motels, cab fare, and parking can be deducted if you are traveling for any business-related reason, such as meeting new clients, or attending a seminar or conference.

Education and Self Promotion

Membership in organizations, subscriptions to publications, seminars and conferences can be additional deductible items.

Mortgage

You are allowed to deduct many of the monthly costs of your home if a section of it is designated as your office. The deductible portion is based on what percentage of the total square footage or rooms is designed for business use.

This means a portion of the cost of your rent or mortgage and interest can be deducted, in addition to various types of home insurance, utilities and taxes, including a portion of home repairs, painting and even house cleaning.


If reducing taxes is so easy, why isn’t everybody doing it?

One major reason is that we’ve been conditioned to be employees and not employers, so we never took the time to investigate the two different tax systems that we have in the United States. But never fear, there are quick and easy ways to get yourself up to speed.

Tax Reductions I.Q. Test

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9 Responses to Tax Reductions Are Just One of the Benefits of Working at Home
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