Deducting the Home Office - Such necessary expenses...
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Such necessary expenses are allowable deductibles and as long as these items are correctly documented and recorded they are provable, so your Uncle Sam will gladly allow you to use these deductions to reduce your federal income tax liability.
Your family and personal expenses are not deductible. The primary rule-of -
thumb is: Does this expense benefit your business? If the answer is “No” then it
is not deductible as a business expense.
Of course the Government will allow you to deduct personal items such as
mortgage interest, charitable contributions, medical expenses and many other
items on your personal federal income taxes. However, these personal items are
not allowable business deductions and are not covered in this book.
Your Business Profits
The federal income tax laws recognize you must spend money to make money.
Virtually every home business, however small, incurs some expenses. Even
someone with a low overhead business must buy paper, computer equipment,
office furniture and basic supplies. Some home businesses may incur
substantial expenses, even exceeding their incomes.
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