Sometimes people who seem to have a healthy income find themselves in shock when they realize what they owe at tax time, but the good news is there are a number of tips to help you get your personal finances into shape.
More than fifty percent of businesses are based out of people’s homes, yet many people fail to take a home office deduction even when they are eligible for it. Previously that may have been partly because of the overwhelming paperwork, but these days there is a much simpler alternative – just deduct five dollars per square foot for a home-based office, to a maximum of fifteen hundred dollars.
In order to qualify, a home office should be vital for a business and used exclusively and regularly for the purpose, although it does not need to sectioned off or in its own room so long as it remains a clearly defined space in the home. There also needs to be enough income in order to offset the deduction.