A financial executive and tax professional, Eli Seruya owns Liberty Tax Service in New York. He has provided residents of Brooklyn with tax assistance since 2011. Not only does Eli Seruya’s business assist in individually filing returns, it often provides tax help to small business clients who work out of their homes. Because many of the clients who use Liberty Tax are self-employed, the firm handles a full range of questions regarding deductions for home businesses.

Deductions lower the amount of the tax you pay and are allowed, for business purposes, if the expense is considered either ordinary or necessary. An ordinary business expense is a regular, ongoing cost that occurs in one’s line of work, while a necessary expense covers certain occasional costs that must be met while running a home-based business. Examples of deductible business expenses include the costs associated with depreciation, bank fees, business insurance, employee compensation, business-based repairs, or car or truck operation.

Home-based business owners can take the foregoing deductions as long as a portion of the home is set up specifically as a primary place of work. You may also take certain deductions if your primary place of work is located in a separate building next to your residence. See a tax professional like Eli Seruya for more information.