www.qns.com i LIC COURIER i may 2017 43 By John Savignano Tax Tip #1: Home Office Many small business owners are afraid to claim “home office” deductions for fear it will bring the auditor calling. Fear of an audit should never keep you from claiming legitimate deductions. Just make sure you keep well-organized records, and that you can prove your deductions are indeed for business expenses and you’ll be fine. Here are some pointers when it comes to home offices. • Make sure that your office is distinct from your living area. Whether it is a room of its own or a part of a larger space, there should be a clear line between your workspace and the rest of the home. Don’t use your office as a spare bedroom or a playroom for the kids. • Figuring out the percentage of home expenses that is deductible for your business is simple. Measure your work area and divide by the square footage of your home. That percentage is the fraction of rent, mortgage, utilities, taxes, and maintenance you can claim. Tax Tip #2: Technology Purchases Up-and-coming businesses need to be up-to-date on their technology, and Uncle Sam does not hinder this. Equipment expenses such as computers, printers, and even company vehicles are tax-deductible, up to a certain amount. Depending on the item, you can deduct the full cost on the year of purchase, or split it between several years. Businessrelated software also qualifies. Tax Tip #3: Travel Costs Since travel can be necessary for business success and expansion, many of the expenses are completely tax deductible. Write off expenses like airfare, hotel fees, car rental and mileage, and travel expenses like laundry costs. Food is only deductible up to 50%, probably because the government figures you would have to eat whether you were traveling or not. Remember these points when deducting business travel expenses: • Feel free to take your family with you, but only the costs for you, and only those that are business-related, can be deducted. • If you’re taking clients out for a meal, those costs are 50% deductible, just make sure to write on the bill/receipt the reason for the meal. • Conference fees are deductible as long as the conference is directly useful for your business. If it’s a conference related to your industry or will help you run your business more smoothly, then it probably qualifies. • As always with finances, especially taxes, it’s important to keep your receipts and details about the reason for purchases. John Savignano Advertorial Tax Tips For Your Home Office
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