Hello again betsy,
If you are operating this business on your own as a sole proprietor
, you will report the income
you have from this business on Schedule C
of your tax return
. On that same schedule, you may deduct any expenses you had in connection with this business. It is then your net income
which is subject to tax.
You may claim a deduction
for anything which is considered to be ordinary and necessary in your particular trade. If you have a dedicated area in your home which you use as your business office, then you may claim a deduction for the business use of your home. This is done by claiming a percentage of your home expenses as they relate to the percentage of space you actually use for your business office. Home expenses which can be included would be your mortgage interest
taxes, property insurance, utility bills, and a depreciation allowance
on the home itelf.
In addition to a deduction for your home office, you may also claim expenses for anything else related to this business. This might include such things as the use of your home computer, internet fees, cell phone usage, mileage on your personal
vehicle if you drive to pick up or deliver this merchandise, cost of advertising, business cards, and cost of your business license. There may be other expenses which are related to your particular business, but these are some of the more common business expenses
which people have as deductions
from their business income.
If this was helpful please press the Accept button. Positive feedback is also appreciated.
Thank you betsy.