How to Prepare for Home Office Deduction on Taxes 2014 NOW IS THE TIME to begin preparing to receive a home office deduction for your online business. It is a great way to save money on taxes. Affiliates, distributors and even employees are actually allowed to deduct expenses relating to your business and expenses that are necessary to run your business. Things like travel, office supplies, computer software, etc. are allowable. In addition, physical office space, used just for work can be deducted, as well. Even if you start your business during the year, you still can take a partial deduction. THE SPACE you use can be as small as a desk or as big as a room, there is no size requirement and you don’t have to have walls or partitions to mark it off. It just can’t be used for personal purposes and must be used exclusively for business. If you’re working on your couch, it won’t count. If you work on your dining room table, it won’t count because you dine there. ALTHOUGH IT CAN BE CONFUSING, IRS has all the bases covered. You can find out how to decide which allowances and exemptions you are allowed using IRS tools like their flow chart and home office deduction worksheet. Starting in 2013, the IRS has made it easier to figure your deductions and rather than adding up the proper percentage of rent, electricity and other home office expenses, all you do is deduct $5 per square foot of your home office. The space is capped at 300 square feet, though, so you can deduct up to $1,500.00 nearly hassle free! Visit me: ibosocial/Kareninstantpayday OR ibourl.net/KarenStephen OR Kareninstantpayday@gmail
Posted on: Wed, 05 Mar 2014 03:28:51 +0000
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