Claiming All Available Tax Deductions

Claiming All Available Tax DeductionsDo you know how much you pay in taxes each year? With all of the uncertainty and changes in the tax code, it’s a smart practice to find innovative ways lower your tax bill.

Today I have two tips that can significantly reduce your tax expense:

Tax Tip #1: Take advantage of home-based business deductions.

This is one of the few remaining tax breaks available to everyone. For this to work you will need to have a legitimate business that is designed to make money. Keep in mind there are certain rules to follow, so consult with a qualified tax advisor.

With a home-based business, you will have the ability to deduct any home office expenses. Including part of your mortgage or rent up to the percentage of your home that is used for business.

You can write off your computer or laptop that is used for business, along with cell phones, meals, hotel, car rental and air fare for business trips. Plus, you can claim 56 and a half cents per mile you drive for business.

Tax Tip #2: Real estate deductions.

This is another area where you can receive valuable tax deductions. If you have a rental property you can deduct all of your operation cost, mortgage interest, property taxes and more. You can even take advantage of what they call “depreciation” expense.

Even if your property value goes up, the IRS says your property decreases in value each year, and will allow you to deduct that amount on your taxes.

There a many more deductions available to you if you set yourself up to qualify for them. So get cracking on your new home business this year. And claim all of the available tax deductions you deserve!

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