You already know how wonderful it can be to work from home, butdo you realize how many home based business tax advantagesexist? Here in the United States, many people operate home basedbusinesses just to take advantage of the numerous taxdeductions.

Claiming the use of your home in your business can give you somehefty deductions on your tax return. As with anythingtax-related, you must meet certain requirements determined bythe Internal Revenue Service. However, if you use one room orpart of a room specifically for your business, you can receive asignificant home based business tax deduction. This can includeportions of your utility bills specifically related to that areaof your house as well as any relevant home improvements.

Your phone and other office services can also provide you with asubstantial home based business tax deduction. If you maintain aseparate fixed phone line or cell phone specifically for yourbusiness, then all costs related to those phone lines can be taxdeductible. However, if you use equipment or services in bothpersonal and business environments, it is more difficult toestablish a tax deduction. Its not impossible, but you mustmeet some fairly strict requirements and maintain good records.

Using your car in your business gives you the potential foranother good home based business tax deduction. Of course, youmust keep excellent records but you can deduct mileage andcar-related expenses that you incur while conducting yourbusiness. With any type of business, other incidental costs comeup. You can also take deductions for purchases of items such asoffice supplies, postage, advertising materials and expenses.You can potentially deduct even more by hiring your children orspouse to work as employees for you. This enables you to deducthealth insurance premiums and other typical employee-relatedexpenses.

In order to find out about the many home based business taxdeductions available to you, consult an experienced tax advisor.With proper advice and good recordkeeping, your home basedbusiness can become even more successful.