How do I claim business use of my home?

Business use of your home. If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. To qualify to claim expenses for the business use of your home, you must meet both of the following tests. The business part of your home must be used [...]

How do I claim personal business expenses?

Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct as a business expense only the business part. Business Use of Your HomeIf you use part of your home in your business, you may be able to [...]

What is investment&interest expense?

Use Form 4952 to figure the amount of investment interest expense you can deduct for the tax year and the amount you can carry forward to future years. Your investment interest expense deduction is limited to your net investment income.For more information, see Pub. 550, Investment Income and Expenses. If you are an individual, estate, or a trust, you must file Form 4952 to claim a deduction for [...]

What is the Cost of Goods Sold?

If your business manufactures products or purchases them for resale, you generally must value inventory at the beginning and end of each tax year to determine your cost of goods sold. Some of your business expenses may be included in figuring cost of goods sold. Cost of goods sold is deducted from your gross receipts to figure your gross profit for the year. If you include an expense in the cost [...]

What business expenses are deductible?

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. It is important to separate business expenses from the following expenses: [...]