The tax deductible expenses for your home office include the business percentage of mortgage interest, property taxes, utilities, homeowners insurance and home maintenance you pay for the year.
In 2013, the IRS introduced a simple way to compute the deduction, allowing individuals with qualifying home offices to easily deduct up to $1,500.
With the new tax laws, however, this deduction vanished for some taxpayers.
Read on to get up to speed on what the changes could mean for your small business and check out other trending small business news.
What the Self-Employed Should Know About Changes to the Home Office Tax Break
For the 24% of employed individuals who complete some or all of their work at home, the home office tax deduction offers a sizeable savings.
But is this tax break going away?
The good news: Not for everyone. However, some employees won’t be able to claim miscellaneous itemized deductions on their 2018 tax return. This means they can no longer deduct their home office.
Do this to keep your home office deduction.
$34 Million in Grants Up for Grabs for Small Businesses
Wish your small business had some extra funding for innovation?
The U.S. Department of Energy is awarding 219 small business research and development grants totaling $34 million. Rolled out in two phases, the grants encourage small businesses to research innovations that will advance the mission of the Department of Energy.
49% of Small Business Owners Say Maintaining Profitability is Their Biggest Challenge
When you run a small business, many things keep you up at night.
Making money is undoubtedly one of them. It’s an anxiety that nearly half of small business owners face every day, according to the 2018 ShopKeep Small Business Pulse Survey.
66% of Americans Dream of Opening a Small Business
The entrepreneurial dream is alive and well in the United States.
Two-thirds of Americans hope to start a small business, according to the first “Inside Small Business Survey” released by The UPS Store, Inc.
Their biggest reasons include a desire to be their own boss (38%) and believing in their own idea (17%).
Why We’ll Soon See a Surge in Employee-Owned Small Businesses
Would you consider handing over your small business to employees?
For Baby Boomers nearing retirement, this arrangement, called a worker cooperative, is becoming increasingly appealing. It allows them to play a more active role in their small business’ future.
Boomers own nearly 12 million small businesses, and more than 70 percent of these companies are expected to switch ownership in the coming years.
Words That’ll Stick With You:
“Happiness lies in the joy of achievement and the thrill of creative effort.”
Franklin D. Roosevelt, 32nd president of the United States
If you’re a small business owner who took the leap to pursue your entrepreneurial dreams, we applaud you. Many Americans never do for fear that it just won’t work out.
Working for yourself has many perks, from seeing your dream come to life to writing off a portion of your expenses if you work from home. And down the line, hopefully after you’ve built a thriving enterprise, you have options of how to handle your business when you retire.
With small business ownership also come challenges such as regularly making a profit and finding funds to keep moving forward. We’re here to back you every step of the way.
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