Since you are in charge of every aspect of your business you need to keep good receipts. Just in case you are audited you can prove to the IRS with those receipts. If you are like most home business owners, you may be paying more money in income taxes than you should be paying. There are numerous tax deductions available for home business owners; you just need to know where to look.

First, take a look at your car. How many times are you driving around on business-related errands? Most home business owners are aware that they can write off vehicle expenses but they aren't sure which expenses they can write off. Here are some common expenses you can write off for your car:

• Driving to the bank to deposit your paycheck


• Driving to the post office to purchase stamps and to mail packages


• Driving to the office supply store


• Dropping off items at a storage unit

One of the best ways to claim these deductions is to run some other errands at the same time. So if you need to drop off some packages make a roundtrip to the grocery store and clock your mileage. You can then write off your gas expenses, auto insurance costs, and any parking fees you may pay to keep your home business operating. Use a notepad to keep track of all driving you do so you have proof to show an IRS auditor.

Second, if you have family members (like your children) that occasionally help out with your home business, you can write off this amount. Allowance paid to your children can count as a business deduction (if they do some work for you), so can meals to restaurants if you are discussing business or it is a business-related lunch. You will need to keep accurate records of the work they do for you like cleaning your office, taking out the garbage, responding to emails, etc.

Third, you can deduct a portion of your rent or your mortgage since you are working from home. You can only deduct the amount of money you spend in rent towards that space in your home, so this means you can't deduct your entire mortgage. You can also deduct the cost to purchase equipment and the costs to maintain it. A portion of your utility bill can be deducted since you probably keep the home warmer or cooler since you are in it all day. You can deduct the cost to purchase office supplies like ink, paper, writing supplies, and even paper clips. Make sure you keep receipts and good records of all your business expenses so you can properly write them off come tax time.

Hire a good accountant to help you with your business taxes. They will have more information on little things you may be missing and they can also help you avoid an audit by properly filling out your taxes. Even if you are audited, you will have all the proof you need so you won't get a fine from the IRS.