The Innovative Traveler - Business Expenses Part 3 of 4

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Business Expenses Part 3 of 4

By Webmaster, on November 30, 2008 03:14 AM

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Personal versus Business Expenses

Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 5 of Business Expenses, for information on deducting interest and the allocation rules.

Business Use of Your Home

If you use part of your home for business, you may be able Instant Forex Profit to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Refer to Business Use of Your Home, and Standard Mileage Rates.

Business Use of Your Car

If you use your car in your business, you can deduct car expenses. If you use your car for both business and Fellow Traders personal purposes, you must divide your expenses based on actual mileage. Refer to Travel, Entertainment, Gift, and Car Expenses. For a list of current and prior year mileage rates see the Standard Mileage Rate.

The Innovative Traveler