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Running an effective home office Part 2

Posted on 12 September '12 by , under General News.

Invest in a fast Internet connection if you’re working from home full-time. Once you get used to fast service and being constantly connected to the Internet, it makes email communication and finding information much easier.

When you work from home, area you’ll quickly deal with is which expenses are deductible as business expenses and which are not.

Most normal business expenses that you would incur whether or not you were working from home: postage, office supplies, advertising, wages are all treated the same way as any other business. You can deduct those expenses as part of your regular deductions for the cost of doing business.

However, you have an additional tax savings option on your home office if you qualify, the home office deduction, enabling you to deduct a portion of the cost of your house or apartment used exclusively for business. Be careful! There are many things to consider before taking a home office deduction, including the fact that it is closely examined by the tax office.