Business expenses are a part of running almost any type of company, but did you know that you can write off certain expenses on your business tax return? When you write off qualifying business expenses, you stand the chance of lowering your tax obligation, so it makes sense to deduct business expenses where possible.

What Can Be Written Off?

Whether you’re an accountant in Long Island or a mechanic in Boise, you can probably write off business expenses on your taxes – but what can be written off? While an accountant in Long Island will likely have some very different expenses compared to a mechanic in Boise, both can review Publication 535 issued by the Internal Revenue Service (IRS).

This document is updated regularly to include information about various business expenses that can be deducted from federal taxes. In most cases, any expense for a product or service that is used solely to conduct business can be written off, but not everything qualifies. For example, if you purchase a computer to use for work, but you also use it at home to surf the web or play games, that piece of equipment would not qualify as a business expense.

Can Home Office Expenses Be Written Off?

With the rise of the work-from-home job, many people wonder whether home office expenses can be written off. As with other types of business expenses, some home office expenses can be written off, but these write-offs must be for expenses incurred solely while doing business.

For instance, you can write off parts of your mortgage or rent for your home office space, but that space must be exclusively reserved for your business. This means that you can’t use your bedroom as an office and claim it on your taxes.

Also, a write-off for home office space must coincide with a percentage of your mortgage or rent equal to the percentage of your abode used exclusively for work. Additionally, employees who work for a company from home generally cannot write off these expenses.

Disclaimer: The above does not constitute tax advice. Always speak with a tax professional for guidance regarding your personal situation.

Author Resource:-

Mark writes often about tax and estate planning. His articles may include topics like tax planning, estate planning, business accounting or any other tax service to help the people in needs. You can find his thoughts at trusted tax advice blog.