If you have a business, then you might be able to utilize tax deduction for your home in order to save some cash when tax time rolls around. However, before you get excited and start marking deductions that your neighbor’s cousin’s friend said you could, learn for yourself what is and is not allowed according to the Internal Revenue Service.

In addition to operating within the law regarding tax deductions for your home business, you will also need to make sure that your state laws and taxes are properly cared for at this crucial time of the year. So, find out both state and federal guidelines for you.

One of the ways that you can figure this out is by hiring an accountant to take care of the financial aspect of filing your taxes. After all, these men and women are experts in the field and know exactly what can and cannot be included in your tax deductions for your home business.

Alternatively, you can visit the IRS website and read the various publications available regarding the things that you can write off on your taxes. Always be sure that you understand exactly what you read. The government, including the IRS, does not believe that ignorance is an excuse for breaking the law. Therefore, you could get in trouble if you do something illegal and didn’t know it.

The home business tax deductions rules are fairly simple and straightforward. If you use part of your home for the business, you should be able to use part of your expenses toward the company. However, you cannot always do so and you must be sure you claim the correct amounts.

For instance, if you have a primary work place outside of the office and don’t really use your home office for business purposes, it would be wrong and illegal to claim that you do.

Fortunately, the IRS has simplified matters in recent years in a way that is helpful to business owners such as yourself. You can use these new forms to claim a standardized deduction in many cases, saving you an incredible amount of money and hassle.

One thing you should never do is ignore your taxes and hope that you just don’t get caught. This is a bad mistake that can land you in jail and lead to stiff fines. The amount of money you could end up being charged will far exceed what you might save in the short term.

Your taxes are a serious matter that you should never get behind on. File an extension if necessary to make sure you are able to get everything taken care of with the IRS in a good manner. This is far better than trying to rush through and making a huge mistake!

Enjoy your company and your home. Use home business tax deductions to make certain your finances are in order and that you are able to make the most of your business opportunities now and in the future!

If you would like to generate some additional income or would like to kick start your entrepreneurial dream, you should consider starting a home-based business. You might be surprised to learn that about half of U.S. companies operate as home businesses.

 Here are the top 5 home business ideas

1.    Freelancing

Freelancing is probably the easiest form of home business to delve into and operate. Whatever your skill might be – web design, writing, photography, and marketing – freelancing offers a great deal of freedom and flexibility. It is easy to start and involves little to no costs or even paperwork. You can get started with freelancing by approaching past clients or employers that can benefit from the services you offer and then branch out as your reputation and body or work grows.

2.    Blogging

It is possible to make money through blogging. Today, you will find thousands of people worldwide who solely rely on blogging to earn a living. If you are passionate enough about a particular hobby or topic and have good writing skills you should give blogging a try. In blogging, income can be generated through advertisements and affiliate marketing, or paid product reviews. You can build traffic to your blog through search engine optimization (SEO) and social media among other traffic sources.

3.    Child Day Care

A child day care business is a potentially long-lasting and lucrative home business opportunity. A home environment is usually appealing to parents and once the children are settled, you will most likely have that business until the children are old enough not to require care. It is however important to ensure that you comply with local and state regulation before starting this type of business.

4.    Creative Business

From providing interior design consultation services to making gift baskets, if you are creatively endowed and have the space to create and store, you should consider earning money from your talents. You should start with getting to know the market followed by planning to identify those untapped niches.

5.    Virtual Assistant

A virtual assistant is a person who provides a wide range of ‘virtual’ services to other businesses or individuals including marketing, administrative, and technical support from a home office. A virtual assistant answers calls and manages the employer’s calendar while he or she is busy.

Virtual assistants are growing in popularity as businesses look for ways of cutting costs and outsourcing some administrative functions. If you have the time, an administrative background, and are organized, you should consider becoming a virtual assistant. You can either start with your personal connections or use the services of a Virtual Assistants’ organization that can help connect you with clients.

Final Thoughts

The thought of running a home-based business is one that many people have but unfortunately only few ever act on it. Running a home business can be an easy and fun way to earn a secondary or even primary income from the comfort of your home. The 5 home business ideas discussed here are all great but you should always remember that you will never be successful in anything if you don’t try!