Small Biz Tip: Taxes: Home-Based Businesses

Tips from Thursday, April 2, 2009

The Small Business tips today will benefit specifically those who run home-based businesses.

1. Keep your income and expense records according to the categories used on the IRS Schedule C form.
2. Home businesses should still have a separate bank account and/or credit card for all business expenses.
3. When using part of home for business, at least part of a room must be specifically for business use; if not a whole office space.
4. Home-based business owners can NOT deduct most, or all, of personal expenses as business expenses. Anyone who claims so = schemer.

Daily Overview: Keep everything from your home business separate from your personal, the IRS even requires it!

I am not a tax professional and have attempted to condense sometimes complicated and detailed tax tips into 140 characters per line. My interpretation may not be exact. Please contact a tax professional when doing your taxes.

Some of the information above was obtained at AllBusiness.com.

Please contact the IRSonline or via telephone for all of your tax

IRS Telephone Assistance for Individuals: Toll-Free, 1-800-829-1040

IRS Telephone Assistance for Businesses: Toll-Free, 1-800-829-4933

IRS Telephone Assistance for Exempt Organizations, Retirement Plan Administrators, and Government Entities: Toll-Free, 1-877-829-5500