The office-in-the-home deduction produces good-to-excellent tax savings by turning personal house expenses into business deductions. Additionally, it enables you to deduct big vehicle expenses by eliminating nondeductible commuting mileage. But to qualify for the home-office deduction, you must use the office exclusively for the business or businesses for which you are claiming the deduction.
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Lock Down Vehicle Deductions with a Home Office
The IRS gives you two possible strategies for turning otherwise personal mileage into business mileage: Going to a temporary work location Establishing an office in the home as a principal office The temporary work location strategy contains some real unknowns, such as what is technically considered a temporary work location and whether the work performed…
Using Children’s IRAs to Pay for College
If your child has earned income (maybe from working in your business), you may want to consider establishing an IRA for your child. The IRA funds can, in turn, be used to help pay your child’s college expenses. When your child withdraws money from an IRA, tax law imposes taxes on the withdrawals, but no…
Update on Health Savings Accounts (HSAs)
Health savings accounts (HSAs) are now more popular than ever. According to a recent survey, the number of HSAs has surpassed 21 million, and the accounts now hold about $42.7 billion in assets. Here’s a very tight summary of how the HSA works for you: Deduct the health insurance cost. To enable the HSA, your…
Claim a Tax Credit for Sending Your Child to Camp
You may be able to claim the child and dependent care credit if you pay expenses for the care of your under-age-13 child or another qualifying person to enable you (and your spouse, if filing a joint return) to work or look for work. The tax credit is a percentage of the work-related expenses you…