As a tax accountant in Berwick, we are likely to work with many small business owners who operate from home. While running a home-based business has its advantages, it also comes with its own set of challenges, especially when it comes to lodging your tax return. The good news is that there are several deductions that you may be able to claim for your home-based business expenses.
Here are some of the deductions you should consider as a home-based business owner”
1. Home Office Deduction
If you use a portion of your home exclusively for your business, you may be able to deduct a portion of your home-related expenses, such as mortgage interest, and property taxes. utilities, and repairs. To claim this deduction, you must meet certain criteria, such as using the space regularly and exclusively for business purposes.
2. Business Use of your car
If you use your car for business purposes, you may be able to deduct the expenses related to that use, such as fuel, oil changes, repairs, and insurance, To claim this deduction, you must keep detailed records of your business mileage and the purpose of each trip.
3. Office Supplies and Equipment
You can deduct the cost of office supplies and equipment, such as computers, printers, phones, and furniture, that are used exclusively for your business, You can also deduct the cost of repairs and maintenance for these items.
4. Internet and Phone Expenses
If you use the internet and phone for your business purposes, you can deduct the expenses related to these services. This can include the cost of your internet service, phone calls, and international call charges.
5. Professional Fees
As a small business owner, you may need to hire a tax agent or a small business accountant to help with lodging your tax return. You can deduct the fees you pay to these professionals as a business expense.
As you can see, there are several deductions that you can claim as a home-based business owner. However, it’s important to keep accurate records and only claim the deductions that you are entitled to. Working with a qualified tax accountant can help ensure that you are claiming all the deductions you are entitled to while also minimizing the risk of an audit.
If you are a home-based business owner in Berwick and need help lodging your tax, contact us at Rands Tax & Business Consultants. Our team of tax agents and small business accountants can help you navigate the complexities of tax law and ensure that you take advantage of all the deductions available.
Please feel free to reach out to Rands Financial Services on 0434391331 or send us an email at https://www.randsfinancialservices.com.au/contact-us for more information.