If I told you that you could deducted some of the cost of your house as a business expense in your federal income tax return, would you? The main advantages of a home business are that they are exempt from many government regulations and many otherwise personal expenses automatically become a home business tax deduction. What if I told you that you were able to not only get the regular business deductions, but you could also deduct part of your utilities, home mortgage interest and repairs to your current home. All of this is possible as long as you know what home business tax deductions are legitimate.

If you know how to take the advantage of things such as the home-based enterprise tax deduction, starting a business from home may be a worthwhile endeavor. Do you drive anywhere at all for your home business? In 2006 the federal government allowed 44.5 cents per mile as a deduction on your taxes. If you travel from your home to any location for business you are able to use it towards a home business tax deduction as long as you keep accurate records. Repairs, insurance, gasoline, and payments or lease payments are all deductions, but only for as long as you are using them for business and not for personal use.

You really need to learn the basic home business tax deductions, which can save you thousands to tens of thousands of dollars every year. You are able to deduct a portion of your home mortgage interest, but only the portion of your home that is used for business. For instance, if you have a 2000 square foot home and you are using a 200 square foot room for your office, you are able to deduct 10% of your mortgage interest. However, if you use this room for any other purpose, such as a guest bedroom, you are not able to consider it business space. If the 200 square foot room is a business area you are now able to deduct 10% of your home repairs, security systems, house insurance, real estate tax, utilities, and services like depreciation, phone, and trash removal.