If You've Got It, Deduct It...Maybe.

Running a home-based business can offer many beneficial tax deductions that other businesses sometimes may not claim. Unfortunately, too many small business owners end up paying extra taxes every year because they are unaware of several small business deductions that are available.

Each business may be different, however, so be sure to discuss any possible deductions with your tax advisor or accountant.

  • If you join any business or purchase into any franchise, the expenses, such as kits or franchise fees, may be claimed as deductions.
  • Be sure to save all receipts for any supplies you purchase for your business use. Computer paper, business cards, pens, catalogs, or any other items you purchase and use for your business.
  • Most advertising and giveaways can be claimed on your taxes. Keep all receipts for any newspaper ads or any advertising you do online.
  • If you have a phone line or internet connection for business use, save all receipts for each bill paid.
  • If you incur fees from customers' bounced checks, those amounts may be deductible. Be sure to keep the returned check, the letter from your bank and your bank statement to show the fees you were charged.
  • Keep receipts for all shipping supplies and postage.
  • Computers, copiers and fax machines may also be deductible.