| Tax deductions are just one reason among many that | | | | homeowners insurance, power, heat, water, and |
| a home based business can be attractive. With a | | | | property taxes. The same is true for vehicle expenses |
| home based business you may quite properly and | | | | to the extent the vehicle is used for business purposes |
| legally have the business carry expenses that also | | | | Deductible expenses include insurance, gas and oil, |
| benefit you personally as long as they serve a | | | | maintenance and repairs, car washes, license and |
| legitimate, primary business purpose. Legitimate | | | | registration, and loan interest as well as taking a |
| business expenses can do double duty as expenses | | | | depreciation deduction for the declining value of this |
| that might be considered purely personal if you were | | | | business asset. In order to take advantage of business |
| simply an employee of someone else's business. | | | | tax deductions you must actually own and operate a |
| Personal expenses that you have to pay in any case | | | | legitimate business that produces income. |
| become deductible as business expenses and you | | | | The IRS won't permit attempts to write-off expenses |
| have sheltered your income from unnecessary | | | | associated with hobbies nor will they allow you to |
| taxation. | | | | write-off amounts in excess of taxable business |
| For example, if you use a room of your home | | | | income. Remember, the tax laws are sometimes |
| exclusively for business purposes, you can deduct (or | | | | complicated and each home based business is unique. |
| write-off) all of your costs associated with that portion | | | | Consult with an accountant, attorney or qualified tax |
| of your home. These expenses may include | | | | advisor to ensure that your returns are properly |
| maintenance and repairs, rent, mortgage interest, | | | | prepared. |