Work At Home Franchises And Tax Benefits Of A Home Office
For various reasons, sometimes we cannot go out for work. Or maybe we don’t want to fight the commute. That is why work-at-home franchises are the most in-demand concepts in the franchising business. They give the desired flexibility that people are looking for, besides being a steady source of income. There are many types of work-at-home franchises, starting from direct mail service to maid service franchises such as Allegra Network, College Nannies, Family Financial Center and Paint Medic, to name a few. Having an office in home means that you can lessen your overhead cost, need not to commute to the office and most importantly, can be there when the family needs you.
Another major advantage of having a home office is that you are entitled to have some tax benefits in lieu of it. But, first of all you have to see whether you qualify for the home office. According to the law of the United States, you can claim a portion of your house or garage as a home office, if you use it on a “Regular” and “Exclusive” basis. Now “Regular” means that you use that portion of the house regularly for office work and not occasionally. “Exclusive” means that the portion of the house where you have your office is used only as an office and for nothing else. Another important point is that you cannot operate the management and the administrative aspects of your business from another fixed premise besides your home office. Of course, tax law is complicated, so check with your accountant on your particular situation.
If your home office qualifies as one, you will get the following deductions – reduction on the house, home insurance, domestic help, home mortgage interests and real estate taxes or rents. In addition, you cn get reduction on the bills of phone lines used solely for business purposes. You can also get deduction for office furniture, if you can prove that they are used 100% for office work only. There are also several other fine points of the tax benefits of home office. You can consult a good tax lawyer in order to know that.
brandEXPANSION associates too can help you in this matter by helping you find a great work-at-home opportunity. Contact us.
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