How Can I Maximize My Home-Business Deductions?

If you have a home-based business or a home office, you can deduct a percentage of your residential real estate taxes, utilities, and telephone expenses. In addition, your auto, meal, travel, and entertainment expenses may be deductible if they relate directly to your business.

Always maintain complete and accurate business records to document your deposits, income, expenses, and deductions. If the IRS audits your business, it may require you to demonstrate that each entry on your tax return is correct.