Is your business office in your home? Did you know that the IRS allows you to take a tax deduction for this? There are however, certain parameters. To qualify, the area must be used regularly and exclusively for business purposes. It should also be a clearly defined area, like a room in your home. It must be the principal place of business and/or a place used to meet or deal with clients or customers. A guest book or sign-in log will help substantiate this deduction.
All expenses related to the home; your mortgage, property taxes, utilities, alarm, etc., can be deducted at the percentage for the home office. This rate is determined by dividing the square footage of your office space by the total square footage of your house.
Different rules apply for day care and adult foster care homes. Consult with your CPA and/or tax preparer.