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Finding all of the home business tax deductions that you can make is challenging. With so many tax rules, there are many deductions that are commonly overlooked. Here are a few home business tax deductions that you should not overlook.
1. Health Expenses
As part of owning a home business, you could take advantage of tax laws that allow you to deduct certain health expenses. For example, if you pay for your own health insurance, for you and your family, you can deduct the entire amount of your premiums. This applies if you are not eligible for a group health plan. In addition, if your deductible is above $1000, you can start a health savings account. Any money that you contribute to that, up to $5000 for the year, is deductible on your taxes.
2. Home Office
You can also deduct a portion of your utilities, mortgage, insurance and other taxes, depending on how big your home office is. If you have an office dedicated to your home business, you need to take this deduction.
3. Auto Expenses
You can also deduct a certain amount for the mileage on your car for business trips. Keep a log book of your mileage, or simply deduct the actual maintenance costs on the car.
