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Tax Season – 5 Tips on Understanding Home-Office Deduction

Many people work from home these days, and some of my family and friends have home based businesses.  So when I read this article about home-office tax deductions, I decided to pass it on.

5 Tips on Understanding Home-Office Deductions
From SCORE.org, a partner with The Company Corporation®

  1. Take advantage of every legal opportunity to reduce your taxes. Recent changes in the law benefit business owners who use their homes as an administrative and management base but work at other locations—such as plumbers, general contractors and health-care professionals.
  2. Ask your tax professional to analyze your business regularly so you don’t miss important deductions.
  3. Document deductible items. These usually include such costs as computers and other equipment, telephone charges, furnishings, and pro-rated portions of rent, utilities, home insurance and homeowner association fees.
  4. If you are a homeowner, discuss with your tax adviser whether or not to take a depreciation deduction for the office space. Sometimes it pays; sometimes it doesn’t.
  5. For detailed information, visit //www.toolkit.cch.com/ the web site of CCH Inc., a business information services company based in Illinois. Or, go to the Internal Revenue Service , and download IRS Publication 587, Business Use of Your Home.

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