Tax Benefits of a Home Based Business

As an Enrolled Agent with the Internal Revenue Service, I am licensed by the U S Department to represent taxpayers before the IRS.

There are many tax benefits to having a home based business. Among these are your home office. The room you use in your home to conduct your business makes many expenses not normally deductible, now deductible. These expenses include home insurance, utilities, internet, your computer, office furniture, mortgage interest (if not used as an itemized deduction), and property tax (if not used as an itemized deduction). When you travel talk to people about your business and/or get supplies, then you can take your mileage or actual expenses from the use of your vehicle. I recommend keeping a mileage log and using the mileage deduction. It is much easier to verify if the IRS ever checks.

With home based business you are considered self-employed.
If you pay for your own health insurance, then you can take a health insurance deduction on page 1 of the Form 1040.

This is just some of the business expenses to keep in mind as you start your business.

Please, contact me for information about the tax benefits of a home based business.