Entrepreneurs often miss deductions which means they are leaving money on the table. What is the number one missed deduction? Hmm, read on…
One of the most commonly missed deductions for entrepreneurs is the home office deduction. This deduction allows business owners who work from home to claim a portion of their home expenses, such as mortgage interest, property taxes, and utilities, as business expenses.
To claim the home office deduction, business owners must use a dedicated space in their home exclusively for business purposes. This space must be used regularly and exclusively for business, and cannot be used for any personal purposes.
In order to claim the home office deduction, business owners must also keep detailed records of their home office expenses, including receipts, invoices, and other documentation. They must also calculate the percentage of their home that is used for business purposes, and only claim a deduction for that percentage of their home expenses.
Overall, the home office deduction can be a significant tax savings for entrepreneurs who work from home, but it is commonly missed due to the requirements and limitations of the deduction. It’s important for business owners to familiarize themselves with the rules and requirements for claiming this deduction, in order to maximize their tax savings.
R. Kenner French, is a small business contributor at Forbes.com, author of three books, an executive at both VastSolutionsGroup.com and VastHoldingsGroup.com, a keynote speaker, and a Dave Matthews Band fan!