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Women Working From Home


Women Working From Home
Tax Issues for Home-Based Businesses
Depending upon your ownership status of the business, you are faced with certain
decisions that will have to be made when filing your income taxes.
My first and foremost advice to you would be to either retain the services of an
accountant, a tax professional, or take a course in tax preparation so that you can
become better informed of your options and what each entails.
As a home-based business owner, you can take advantage of certain deductions that
are allowed by the IRS. The basic rule of thumb is that if the money was spent on
your business in some way, either all or a portion of it may possibly be deductible.
Here is a list of deductions you may be able to use:
• Office supplies.
• Postage expenses.
• Periodicals, books, and magazines for the business.
• Telephone bill. If the telephone is a business line, the entire expense
for the year may be written off as a deduction. If you use your home
telephone line for business, only a portion is an allowed deductible
expense.
• All long distance calls made from your home phone for your business
should be clearly marked on the telephone bill as proof that they relate
to the business. A telephone line used solely for your computer
modem and/or fax machine may be deductible if the computer and/or
fax machine are used strictly for business.
• Business trips. Expenses directly related to business travel are allowed
deductions. Make sure you save all receipts.
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