Welcome to WordPress. This is your first post. Edit or delete it, then start writing!

Small business owners may qualify for a home office deduction that will help them save money on their taxes. Taxpayers can take this deduction if they use a portion of their home exclusively, and on a regular basis, for any of the following:As the taxpayer’s main place of businessAs a place of business where the taxpayer meets patients, clients or customersA place where the taxpayer stores inventory or samplesUnder certain circumstances, the structure where the taxpayer provides day care services.

Deductible expenses for business use of a home include:Real estate taxesMortgage interestRentCasualty lossesUtilitiesInsuranceDepreciationRepairs and Maintenance

Certain expenses are limited to the net income of the business. These are known as allocable expenses. They include things such as utilities, insurance, and depreciation. While allocable expenses cannot create a business loss, they can be carried forward to the next year. If the taxpayer carries them forward, the expenses are subject to the same limitation rules.

Taxpayers who qualify may choose one of two methods to calculate their home office expense deduction:Simplified Method:

A rate of $5 per square foot for business use of the home which is limited to a maximun size of 300sq feet and a maximun deduction of $1,500.Regular Method:

A % of the home that is use for business whether you use the whole or part of the room for conducting business.

The post Hello world! appeared first on Mohit Vijay And Associates.