If you are qualified for a home office deduction, you need to determine how much you can deduct. To determine the value of the deduction you can do two ways. Simplified option: Deduct by the square feet. According to IRS, if your home office has 300 square feet or less you can use this method. The maximum amount that you can deduct using this option is $1500. It is calculated by multiplying 300 square feet by $5 per square foot. Actual expense deduction: Deduct by the percent

Being an entrepreneur requires a lot of time and dedication. Most of the small business owners wear several hats. CEO, manager, employee, computer tech ... the list goes on. Sometimes you become overwhelmed with secondary tasks rather than spending time with your clients. If you are an entrepreneur who wants to start your own business, or already a business owner, you need to hire a professional bookkeeper. Here are 3 reasons why: 1. Opportunity cost. Bookkeeping is taking a

Many entrepreneurs start their business from their home, garage, or a basement. However, not everyone meets the criteria to claim the home office deduction. There is a simple explanation when you can use home office deduction. IRS states that you have to meet 2 conditions: 1. Regular and exclusive use. This rule states that the space that you use for a home office must be only for a business use. For example, you can not use your guest bedroom for the office and for your gue

Every year the government of the United States makes changes to the tax laws. At the end of 2016, Congress of the United States cut off some of the credits and deductions. Here is what can affect your 2017 tax return: 1. Mortgage Insurance Premium Deduction Mortgage Insurance Premium or MIP is paid if your down payment is less than 20% on your home loan. The MIP must be paid by the buyer to protect the lender from losses in case if the buyer is not able to make mortgage paym