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Home based business travel expense tax question?
If you are leaving for your regular job in the morning but do home based business work before you go can you right off the miles from your one job driving to the next. I have recieved 2 different answer for this question for ?tax pros? and want to see if anyone else might know. I ordered a book on home based business tax laws but it hasent arrived yet and I was curious now. Thanks

Suggestion by Tim
Let me see if I understand. You have two jobs. A regular one and a home based one?

If that is the case, you can not write off the travel from your home to your regular job.

Suggestion by v b
The IRS is going to see this as commuting expense. The first trip of the day from home to work and the last trip of the day from work to home is commuting. Commuting is not deductible.

Your home based business is NOT you main job.

Suggestion by DeucePrez
Instead of writing-off the mileage, write-off the gas expense?.especially with the rising cost of gasoline.

Document your business use of the vehicle AFTER putting gas in your vehicle and save the receipt.

When you speak with a CPA, you can show them that you fueled up your vehicle before driving it to, say, a seminar.

Home based business tax write offs?
I just started network marketing home business. And my question is what can i write off for the taxes? I know that I can write off millage, office equipment. What else can I write off. How do I write off a cell bill I use for personal and business? Any sites where I can find this?

Suggestion by Ryan M
www.irs.gov

Suggestion by the tax lady
If you have a cell phone on an unlimited minute plan, $ 0 is deductible.

As for the office equipment, you need to document (log) the time spent on personal vs.business use. updating your facebook page is personal time. So is twitter.

For mileage, keep a log of what each trip was for, who you met, and what business you got from it. Taking someone out to dinner that you never get business from is not going to pass muster with the IRS.

Home Based Business Tax Deductions?
I have a home based business. Let?s say that I purchase a computer that is needed for the business. I know that this is considered a business expense and is tax deductible. Do I need a certain amount before they can be taken off taxes? For instance I know you have to have a certain amount of medical expenses before you can deduct them. Is it the same for business expenses?

Suggestion by StephenWeinstein
No. Medical expenses and employee business expenses are Schedule A itemized deductions and can only be claimed if they exceed a certain percentage of your AGI. Expenses for a business that you own are deducted on Schedule C or Schedule C-EZ and may be claimed even if they are only one dollar.

A computer has a useful life of more than one year. Generally speaking, you are not allowed to deduct the entire cost in a single year and must instead deduct only the depreciation. If you qualify for a Section 179 election, then other rules may apply.

Suggestion by v b
The computer is supposed to be depreciated. Depreciation means you allocate the expense over a class life (often 5 to 7 years) and take a deduction each year for the portion used for business.

Unlike unreimbursed employee expenses, there is no threshhold on the schedule C.

Suggestion by Ralph T
Contact the IRS local office or website for specific help.
If the computer is used for a home business,you cannot have any games installed (even if you don?t play them).
You might not be able to deduct the purchase outright,but depreciate the value over a few years.
You might want to invest in a ?Home and Business? financial software to keep personal and business records separate.

Suggestion by Gerardo D
You may need an extra computer and another e-mail account for your personal purpose. This way it ca be assumed the computer in the part of your house is used for business purposes. If you use the computer 100% for the business you can take an IRC 179 deduction the year yu purchased it (be careful not to forget the convention for the asset) and the remainder basis under MACRS.

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