A lot of people who work from home do not make use of all tax benefits they're entitled to. They might think they're too complicated or they don't fit for the situation. However, the savings from the tax deductions alone could be significant. They'll definitely help you pay for tax preparation by a professional. Don't let a lack of understanding stop you from taking advantage of these lucrative tax deductions that are available to business that operate from your home.
1. Home Office Expenses You don't require an extra room with an entrance. Any space within your home you use often and exclusively to conduct business may qualify for the deduction for home offices. If you are eligible, you'll be eligible to deduct a percentage of the cost of housing such as mortgage or rent or utilities, as well as certain home improvement.
2. Auto Miles In 2022, you'll be able deduction of 55 cents from each business mile you travel. It can be a lot! The commuter miles aren't considered business miles, however because your commute is only down the hall , you'll be claiming an income tax deduction as soon as you get off your driveway!
3. Computer and Internet Connections You might be able to claim some of the costs of your computer and an internet connection. You'll need to keep a track of the percentage of time you utilize your computer and internet connection to conduct business as well as the percentage of your usage is for personal use.
These deductions will require some study to ensure that you adhere to all IRS's rules, but by taking each deduction you're entitled to you'll help you save a significant amount of money during tax season.
Kathleen Parker, EA is a tax preparer who has 20 years working with businesses on tax preparation. Learn more about businesses that are home-based on https://internettaxconnection.com
GK Kedia tax consultants can help you minimize your tax liability, capitalize on tax deductions and manage your tax situation in India.
They are capable and expertise in tax law, tax planning, and tax compliance.
