| Tax Tips For Independent Artists
IRS Publication 587- Business Use of Home
Office - If you have an office space within your home there is potential that the space may qualify as a deductible expense. The rules are very strict. For Example, personal items may not be kept in the space allocated for business use. This will disqualify the deduction. The Publication describes the exact amount of the deduction based on the room's percentage of business usage and its percentage of square footage in relation to the rest of the home.
Utilities: Gas, Heat, Water and Sewage and Electric- A portion of your bills may be deducted based upon the business usage.
Phone- If you do not have a separate phone to use for your business, then you may only deduct the long distance or local call charges specific to doing the business. You may not deduct the basic service charges for the home phone.
The home office is one the many areas where individuals operating a home-based business have been caught by the IRS for taking unqualified deductions. Use the publication to plan ahead and work closely with your tax preparer, accountant or CPA.
http://www.irs.gov/pub/irs-pdf/p587.pdf
IRS Publication 463- Travel, Entertainment and Gift Expenses
This publication gives you the current year's allowable mileage rate of cents per mile. The rate changes each year. The article also states amounts permitted for meal deductions. Each city has a different meal allowance for travel. These rates also change. The IRS provides various methods to account for these deductions.There are two methods, when keeping track of travel expenses by car, you may either, keep every receipt for gas and car repairs and add the amounts, or keep track of the mileage traveled and apply the cents per mile method. Once you decide how you will account for these expenses at the start of the year and be consistent throughout the year. Once you establish your method it is often easiest to stick with it from year to year.
http://www.irs.gov/pub/irs-pdf/p463.pdf
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