Don't let anyone tell you that tax deductions are just for huge corporations. Even if you run a home business, there are plenty of ways
to reduce what you owe to the IRS. Here's a sample of what you may be
entitled
to:
Business Use of Your Home
Any area in your home used, frequently and exclusively, for your business may qualify you for a sizable tax break, but it must satisfy one of these conditions:
It's your primary place of business.
It's where you meet with customers and clients.
It's still considered part of your house, even if it's not physically attached.
If you're renting a house or apartment, don't feel left out; you might be able to deduct a portion of your rent equal to the size of space used to operate your business.
In addition, you may be entitled to tax relief on your some of your home repair costs. But don't go crazy and makeover your entire place. The IRS will only let you deduct costs used to adequately maintain the quality of
the business area in your house.
Transportation, Meals, and Lodging Expenses
Meeting with current and potential clients is an important part of business. And if you're driving to those meetings, you can deduct these related expenses:
Gas and oil
Parking and garage fees
Depreciation and repairs
License and registration fees
Leasing payments and insurance
Tolls
No car? No problem. Deduct the cost of your tickets when traveling
by plane, train, or bus. Also, ease the cost of your business trips with these travel-related deductions:
Hotel bills
Food
Taxicab fares
Phone calls
Dry cleaning
And if you're planning to give a presentation during your meeting, keep in mind you can deduct the cost of shipping your equipment and materials.
Insurance Expenses
Most insurance premiums related to your home business are deductible.
Here are some that qualify: