Death, Taxes and Home Based Business Deductions?

Benjamin Franklin said, "The only things certain in lifeclassification of a home is a house, condominium,
are death and taxes." Let's face it, he was right, neitherapartment unit, or even a boat) that can be used as
one of these facts can be avoided, so we must makeyour principal place of business or where you meet
the best of both situations. I'm not one that likes towith clients or customers, then you are well on your
focus on death, but sometimes when it comes toway to meeting the IRS requirements for Home
taxes, the line gets a little blurred. Even though AprilBased Business tax deductions.
15th for some Americans ushers in a state of fear andLet's face it, you are already living in your home and
panic, it can be a great day for home based businesspaying expenses on it, so why not turn part of it into a
owners. Come to think of it, home business taxbusiness area. Your real estate property tax,
deductions may be just as certain as death and taxes.mortgage interest, utilities, home owners insurance,
With the economical down turn in America, more anddepreciation of your home and repairs are all possible
more people are finding themselves with a reduction indeductions for entrepreneurs who own their own
work hours and some are even facing termination.home. Even if you rent, you can still claim some of the
Because of this, we as a society are being forced tosame things that a homeowner does, and in most
find new and unique ways to bring in income. Some willcases, that might even include your rent payment.
try their luck at entrepreneurship by starting a HomeNow you may have a reason to turn that den or
Based Business, but for others such an idea brings onspare bedroom into a home office, instead of clogging
a paralyzing fear of the tax beast. Choosing not toit up with Christmas storage. A detached garage or
start your own Home Business because of a fear ofother separate structures may also be used if that
the taxman is like never leaving your house becausebuilding is used in connection with your trade or
of a fear of being struck by lightning. The IRS is anbusiness. Storage areas of your home can also be
agency to be respected, not feared. I agree that taxincluded for deductions if you use them for storage of
laws and filing deadlines can at times be overwhelming,inventory or product samples.
but a successful merge of business and home can beDo you want to venture into the Home Based
a great marriage. It can also be helpful to youBusiness world and gain these tax advantages, but
personally when April 15th comes around.you are still scared of that lighting strike? Give yourself
Most self-employed individuals who operate a businesspeace of mind and contact your local tax professional
out of their home find it easy to qualify for home officeor the IRS for clarification. Death and taxes may be
deductions. Most can qualify for deductions if they usecertain, but now with the right knowledge of the
part of their home regularly and exclusively forrewards available, you can be certain as well.
business purposes. If you have part of your home (IRS