Rules

There are rules about what can and cannot be a tax write-off for a home business. There are many lists available, but it is very important that a home business owner talk to their accountant to make an appropriate list for their specific business. A home business owner can also check with the Internal Revenue Service (IRS) through their website www.irs.gov to find out about the tax information, including information concerning tax write-offs, which they need to know about since they have a home based business.

Possible tax write-offs

When a home business owner is thinking about what home business things can be written off they should ask themselves what items are used for them to conduct business. This question can help them to narrow down the items.

Office supplies

Office supplies are things that can be written off. For example, paper, pencils, pens, file folders, glue, tape, calendars, bulletin boards, erasers, ink cartridges, a dictionary, paper clips, stapler and staples, etc., are all examples of office supplies that can be written off.

Home office

Many home business owners can write off their home office. But this can only be done if the home office is exclusively used for the home business. If the room is also used by other family members for other household business, the home office cannot be written off. The home office also needs to be used regularly. Most of the work done for the home business needs to be conducted in this home office for a home business owner to deduct it from their taxes.

When a person is deducting their home office, they can only write off the actual amount of space that is used for the home business. And only the percentage of rent or mortgage, property taxes, renters or homeowners insurance, utilities, and other costs that are used by the home business office can be deducted.

Automobile

When a person works from home and they have to do any traveling for their home based business, they should keep track of the miles they travel. They are able to deduct a certain amount of money per mile they travel for their business.

Office machines

Most home business owners have some types of office machines that they use to conduct their business. These items can be written off. For example, the costs of the computer that is used for business, the printer, calculator, copier, and fax machine, etc., can all be written off. The rule for these deductions is the same for the home office; these machines have to be exclusively used for the home based business.

Telephone

If a home business owner sets up a separate telephone line for their home business, they can write off this phone line. And other expenses dealing with the phone, such as long distance, can be written off as well. But if the phone that is used for business also doubles for home use, it cannot be written off.

Furniture

Furniture that is used in the home office, for the business, can be written off. This can include a chair, a desk, lamps, a filing cabinet, as well as other furniture that is in the home business office.