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Everything You Need to Know About Taxes for Your Home-Based Business
Taxes and Deductions for Home-Based Businesses

By , About.com Guide

Your home-based business is in a unique tax situation. Certain deductions are available to home-based businesses, but you must keep good records and determine the business portion of your home expenses. This article will help you learn more about home-based business tax deductions.

1. Understand the "Principal Place of Business" Concept

Before you start taking those tax deductions for your home business, you must meet the IRS qualification that your home is your principal place of business. This article details the IRS requirements and includes some examples to help you sort out this complicated issue.

2. Calculate Your Home Business Space Deduction

Calculate your home business space deduction.

3. Home Office Expenses Deductions

What expenses you can deduct for your home-based business.

4. Other Home Based Business Expenses

Some other home based business expenses you can deduct.

5. Deducting Home Based Business Telephone Expenses

You can deduct phone expenses for your home based business. Here's how.

6. Use Form 8829 to Calculate Home Based Business Expenses

To correctly calculate deductions for business use of your home, you will first need to use IRS Form 8829 to determine the deduction percentage.

7. Limits on Home Based Business Deductions

Home based business deductions are limited. Learn about these limits.

8. Home Based Business Tax Schemes to Avoid

If you are looking for a home business opportunity, here are some things you need to know about tax schemes, to avoid IRS scrutiny.

9. And Home Based Business Tax Deductions to Avoid

A list of IRS-targeted home based business tax deductions to avoid.
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