Best QuickBooks Consulting & Training in Alafaya, FL

How Self-Employed Workers and Freelancers Can Maximize Their Deductions Operating your own business has many advantages but also brings unique stresses and challenges, especially at tax time. Unfortunately, while wealthy corporations know how to seize every tax advantage, small companies and independent contractors often end up paying more taxes than necessary. Small businesses are vital to the economy, which is why the government provides tax breaks to help you out. Find out which expenses you can write off to maximize your deductions. A Home Office or the Business Use of Your Home Any space that you use exclusively for your business on a regular basis permits you to receive a tax deduction. In fact, the area does not have to be a separate room. If you have a corner of the house that is your dedicated workspace, that counts. You have two options for calculating your home office deduction. The simplified method lets you deduct $5 per square foot up to a maximum of $1,500. However, the regular method can offer a larger write-off. Start by determining the percentage of your home’s floor space that you use for business. You can then deduct the portion of your home’s expenses that correspond to that location. These costs include your mortgage or rent, insurance, utilities, repairs, cleaning services, and depreciation.