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By Deborah Sweeney
According to the Global Entrepreneurship Monitor, nearly 2/3rds of all businesses are started in someone’s home and, interestingly, 59% of the 3+ year-old businesses surveyed continue to operate out of the owner’s house. Operating out of your home, though logistically challenging, can save you a lot of money, so it makes sense that even the more established business owners choose to work out of their house.
However, this practice also blurs the line separating our personal and work lives and when tax season rolls around, it’s easy to get confused as to what, exactly, you’re allowed to deduct as a business expense. Does using work equipment, like a computer or iPad, outside of work disqualify it from deduction? In order to be deductible, a business expense has to be both ordinary and necessary – that means it has to be commonly found and appropriate for your business. Home-based businesses heads up – here are five common deductions you’re able to claim. (more…)