Home-based vs. Brick & Mortar Businesses
For businesses operated out of the owner’s home, there are additional small business tax deductions to consider. Can I deduct a computer when starting up a home business? In some instances, if certain criteria are met, a portion of expenses such as purchasing a computer, or using a personal vehicle in the course of business may qualify as a deduction. Business use of the home, for example, allows filers to allocate a portion of home expenses like mortgage interest and utilities, to tax deductions of a small business.
Before jumping to declare personal expenses as business tax deductions however, owners should tread carefully. Exclusive use requirements apply to many deductions. In other cases, you may only be able to deduct a pro-rated or partial amount, based on mixed use between business and personal.
If you need help addressing specific tax questions, filing small business taxes, or learning more about what you can claim as a deduction, there are many options for free help with your business taxes, you can consult for assistance. If you have questions or doubts about a specific deduction, consult a tax professional, either free or paid, before claiming it on your taxes.