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For the "homies": a tax reminder.

If you started your own business out of your home recently--say, as a freelance consultant--don't forget that you may be eligible to make tax deductions for some home expenses such as insurance, mortgage interest, and repairs. To qualify, you have to meet the following criteria:

* The portion of your home where you do business must be used "exclusively and regularly" for your work.

* It must be your principle place for conducting business, or a place where you meet with clients, customers, or patients in the normal course of doing business, or it must be a separate structure used to ply your trade.

* You don't have to meet either of these criteria if you use your home to store inventory or product samples, or if you use part of your home as a daycare facility.

For more information on tax deductions when using your home to conduct business, check out the IRS Publication 587 "Business Use of Your Home." Also be sure to visit the IRS's Self-Employed Individuals Tax Center.

CONTACT JOHN SIMONS AT money@blackenterprise.com.

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Title Annotation:JOHN SIMONS' TIP OF THE MONTH
Author:Simons, John
Publication:Black Enterprise
Article Type:Brief article
Geographic Code:1USA
Date:Feb 1, 2011
Words:176
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