Finance and taxes for the home-based business
by Charles and Bryane Lickson.
Menlo Park, CA : Crisp Publications ; Lanham, MD : Distributed by National Book Network, c1997.
- "For telecommuters, network marketers, entrepreneurs and anybody doing business at home"--Cover.
- Includes bibliographical references (p. 143-146).
Self-employed tax solutions : quick, simple, money-saving, audit-proof tax and recordkeeping basics for the independent professional
Guilford, Conn. : Globe Pequot Press, c2009.
Tax power for individuals
boost your refund by following these simple planning techniques / by James O. Parker.
Naperville, Ill : Sphinx Pub., c2007.
Following even a few of the tax-saving strategies found in Tax Power for Individuals can have a dramatic reduction in your tax obligation and substantially increase the size of your refund. Accessible by anyone, it provides the reader with the latest IRS rules and answers everyday tax-related questions. It explores the IRS's definition of income and how to lower yours through expense deductions, tax credits and depreciation. Its extensive glossary of financial and tax terms makes it an easy-to-understand and essential reference for every home's bookshelf.
Some home based businesses may be able to use space as a tax deduction. Before taking this deduction, it is important to understand the specific rules that must be applied. According to the IRS, the office doesnít have to be a separate room. But it must be an area used "exclusively" and "regularly" for the business.
Taxpayers who devote part of their home to business can consider if the area qualifies for a deduction as an office by asking questions like these:
- Is it the main place of business for the businessman?
- Do you own the business or are you an employee?
- Is it the place used to meet clients or customers?
- Is it not used for any other purpose?
- Is the space used to store inventory?
- Is it used regularly?
Expenses that may be deducted
Several types of expenses can be deducted. These deductions may be based on the percentage of the homeís square footage that is occupied by the office and costs needed to maintain it. It is important to keep well-organized files of receipts and payments. At tax time tax advisors can review these expenses and decided if they meet eligibilty. The IRS publication 587 provides information on figuring and claiming the deduction for business use of the home.
For any home based business, the potential tax savings of a home office is worth checking out.
Article by: St. Louis Public Library staff