Tax Write Off for Your Home Business Workspace

It is important to take advantage of all tax write off home business workspace opportunities. There are many write offs that are not taken because people are unaware of them as well as many that are deducted incorrectly. Below is a guideline that can help you determine which write offs you can take for your home business workspace, as well as how to determine the amount appropriate to deduct.

Electronics and Supplies

Electronics and supplies costs can add up quickly. Thankfully, you can deduct the cost for anything used solely for business. If you purchase pens, pencils, paper or any other typical office supplies, you can deduct the amount that you are using for business purposes. Computers, fax machines, phones, routers and even software can be deducted for your home business workspace. The key to this deduction is that all items must be used only for business and must be deducted during the year it was purchased. For all electronics and supplies, it is extremely important to keep receipts as well as any other paperwork for documentation.

Home Office

In order to deduct costs for the actual home business workspace, it must be used only for business. You cannot deduct the costs for the workspace if it is in the corner of your bedroom and is used for paying bills as well. Document with pictures and receipts to back up your tax write off. You will need measurements of the room used to deduct that percentage from your rent or mortgage. If the home office space takes up 8 percent of your home, only that 8 percent can be deducted from your taxes.

Marketing and Advertising

Any costs related to marketing and advertising can be written off. This includes printing of business cards and fliers, commercial costs, website or newspaper ads and billboards. It is important to get receipts and paperwork for everything you deduct. Even when making copies of fliers, be sure to get an invoice or receipt.

Bills and Utilities

Bills and utilities can be trickier to deduct. You will need to first determine the percentage of time that is used for business as opposed to personal use. Keeping logs can help you to figure out how much Internet or phone time you put in. When you get your monthly statement at the end of each month, you can deduct the amount used for business only. This also applies to other home bills such as electricity. The trickiest deduction will be wireless Internet as other household members may have access. It can be helpful to log carefully and keep meticulous documentation to back up any write offs.

Business Literature and Subscriptions

Subscriptions for business literature are one deduction that is easily overlooked. You can deduct the cost of any yearly subscriptions you have for magazines, websites or newspapers that directly tie in to your business.


If you are working from home, you may need to purchase insurance. For every insurance provider, you are able to write off the cost of your premium.  

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