Monday, March 12, 2012

DURACELL 4GB USB Memory


 Enter to Win!

DURACELL 4GB USB Memory

Giveaway is open to residents of US and Canada, 18+. Giveaway starts on March 12, 2012 and ends on March 31, 2012 at midnight. The winning entry will be verified. Winner will be chosen by Random.org, and will have 48 hours to respond and confirm, or an alternate will be chosen.

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Wednesday, March 7, 2012

Deducting Home Office Expenses

Tax season is here and many are wondering what the rules are for home office deductions.

Here's what the IRS has to say about it...

Tax Tip 2011-53, March 16, 2011

Whether you are self-employed or an employee, if you use a portion of your home for business, you may be able to take a home office deduction. Here are six things the IRS wants you to know about the Home Office deduction.

1. Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly:
     as your principal place of business, or
     as a place to meet or deal with patients, clients or customers in the normal course of your business, or
    in any connection with your trade or business where the business portion of your home is a separate structure not attached to your home.

2. For certain storage use, rental use, or daycare-facility use, you are required to use the property regularly but not exclusively.

3. Generally, the amount you can deduct depends on the percentage of your home used for business. Your deduction for certain expenses will be limited if your gross income from your business is less than your total business expenses.

4. There are special rules for qualified daycare providers and for persons storing business inventory or product samples.

5. If you are self-employed, use Form 8829, Expenses for Business Use of Your Home to figure your home office deduction and report those deductions on line 30 of Form 1040 Schedule C, Profit or Loss From Business.

6. If you are an employee, additional rules apply for claiming the home office deduction. For example, the regular and exclusive business use must be for the convenience of your employer.

For more information see IRS Publication 587, Business Use of Your Home, available at http://www.IRS.gov or by calling 800-TAX-FORM (800-829-3676).

One more thing you need to know is that home-office expenses are deductible only to the extent of the business’s net income, therefore if you have no net income you cannot deduct your home office.

This article is not meant to offer tax advice or tax strategy. Consult with the IRS or your CPA when filing your tax return.