So you’ve taken the leap and started your own home based business.  You’re thrilled to be working for yourself, but now you’re feeling the burden of paying for your own insurance, paying double on social security, and minding your tax responsibilities.  The good news is that you have a new world of tax deductions available because you’re working from home!  Here are few to look for—start keeping records right away!

• Home office.  That’s right—you can deduct the portion of your house that you do your work in.  However, be aware that there are some tight restrictions surrounding this one.  The most notable is that this space must be solely used for your business.  The corner of your bedroom where you’re keeping the computer doesn’t count.  Once you’re down to the right specifications, you can deduct everything that goes into maintaining that space: mortgage or rent, insurance, electricity, etc.
• Office supplies and furniture. What good is a home office without a chair, desk, filing cabinet, paper, pens, and post-it notes?  Yes, this is all deductible.  It’s necessary to keep your business running!
• Phone and internet service.  If you’re able to show proof that you’re making business-related phone calls and doing business-related internet searches/emails, etc., this can be written off, too.  The key?  You may need to get a separate phone line.  And unless you’re advertising your business on Facebook, try to keep away during your “business hours.”
• Mileage.  Does your home based business require some travel?  Make sure to keep strict logs of your mileage and toll fees, as well as your destinations and the reasons for going there.  If you’re as diligent as the government requires, this can be an easy write-off.
• Travel, meals, and entertainment. If you’re traveling far for your business, you can deduct any of these expenses–your hotel, your lunches and dinners with clients, etc.  You might not have a direct boss to reimburse you when you return, but the IRS will allow you to write it off come tax season!
• Health insurance. We all know this one can be outrageously expensive when you’re paying for it with no help from an employer, but actually, this can be deducted as well for a little relief.
• Advertising/Promotions. Any expenses toward building your business may be eligible for deduction.  Did you give away some of your product for free to encourage sales?  Place an ad in the newspaper or create a tv commercial?  This may all qualify.

Of course, all of these are subject to all of the rules and restrictions set by the IRS, particularly the home office deduction.  Therefore, please be sure to check with an accountant or another qualified legal expert to make sure that you qualify and/or are keeping accurate enough records.  And don’t hesitate to ask or look for more deductions—there’s always something else hiding out there!