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March 15, 2009

Use your home as a Tax Deduction

Filed under: Taxes — Tags: , , , , — admin @ 12:24 pm

This is also one of the tax saving technique used by a very few people. If you are the owner of a small scaled miniature business, company or any organization, then you can use that house of yours as a home office for work purposes. This will help you to get deductions on the taxes on that place, as it is being used for company purposes. In this way, you can invest in property as well as pay less tax on it.

You can avail such tax benefits only if your company or business is small scaled. If it’s a big company, then you may not get the benefits on tax, as only small business owners qualify to take home office tax deductions. But if you own or work for a small business you are eligible. Even if you only ‘telecommute’ one day a week you still qualify to claim some of your home expenses as business tax deductions.

For example, if the tax amounted on a property of yours is three thousand dollars, then if you are using it for home office purposes, the tax will amount to a reduced Fifteen hundred to two thousand dollars, thereby saving a lot of valuable money.

You can also take deductions or show deductions on operating your home leading to further saving of taxes. Since you need electricity in your home in order for it to be an office, or heat or whatever else, many other home expenses can be used, at least in part, as tax deductible business expenses.

If you own a small business consider doing your financials, payroll, accounting, etc. from home. Or perhaps get a business line installed at the house and have expanded home office hours. Anything you can do to work in your home allows you to consider your home as an office and get a nice sized tax deduction.

Hopefully now you can see how having a home office can save you a lot of money come tax time if you own or work for a small business. There are so many different available tax deductions that many people fail to claim, be sure you get all the deductions that you deserve.

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