Painting, staging, selling, storage is all done in our home by many of us. Do you paint at home and sell from a shop? You still work from home. It's a great way to cut overhead costs!
Knowing what you can deduct for your home-based business can save you a lot of money when paying your taxes.
Here are the top ten tax deductions that most small businesses track:
1. Depreciating the office and work space actually used in the home for your business.
2. Expenses related to cleaning these areas.
3. Household furniture converted for use in your home office or work space.
4. Household and office supplies used in your home office and work space.
5. Interest on your mortgage attributable to the portion of business use of your home.
6. Real estate taxes attributable to the portion of business use of your home and work space.
7. Repairs and maintenance of the office portion of your home and work space.
8. Telephone, except the base local service, for the first line into your home.
9. Internet expenses related to running your business.
10. Utilities and trash collection attributable to business use of your home (for example, electricity, gas, and water)
Many of these deductions are calculated by using a percentage of the "square footage" of your home and what portion is actually used just for the business. Having a room or space designated as your work space or office is important.
Track these expenses throughout the year and your tax accountant can take the deductions for you.