Do you spend most of your time working from home, then why not try making it a home office and add to the advantage of tax benefits.
The business utilization of your house makes it possible to cover part of such household costs as utilities, rent, insurance, depreciation, mortgage interest, real estate taxes, repairs, and improvements.
You need to make a few specifications while doing so, seaside a part of your house for theverysame purpose and make sure you use the place too.
Make sure you have a dedicated space that is devoted only to your business and the like. Do not mix personal stuff to this.
It also shows that you are into serious business and not trying to fool the tax authorities.
In addition to using your home on a regular and exclusive basis for business, it is also essential that your home be your primary place of business. Make sure that your home is the main or the head office, if you have more than one office. Hats when you can lay your hands on such a claim...
Thus it is not compulsory that all activities taking place at home should be your chief source of revenue. What is essential is that your home is used for book keeping, ordering goods, planning meetings and for consultations with clients / patients / customers.
It may be necessary, at times, to prove that you are using a part of your home as an office. In this case you should have the following proofs ready:
These are very crucial when the authorities come running for proof.
1. Draw a diagram to show which part of your home is being used as your office. If possible, take photographs to give a clear idea.
2. Make sure that all business mail comes to your home.
3. Your business cards and stationery must list your home address as your business address.
4. You must get a separate phone line installed in the business part of your house.
5. Keep a record of the visits of your clients or customers to show that you have actually conducted business at home
These are a few finer points that could help you save those big bucks from those big fellows, so guys happy saving. |
