Home-based Business
Worksheet
Is Your Idea Suited To Being Home-based?
If you answered yes to
most of these questions, your business may be suitable for a home-based
business.
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Yes
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No
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1. Does your business
need small amounts of space for inventory?
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2. Are you able to
ship or transmit your product or service without the use of
ships, trains, or trucks?
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3. Do you have an
area in your home or a nearby building which can be used exclusively
for keeping business records and managing the business operations?
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4. Are you able to
sell your product or service without the need for customers
to shop regularly at your place of business?
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5. Can electrical
and telephone lines be added to the area of your home that you
intend to use for business?
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6. Is your home environment
quiet enough to allow you to concentrate or carry on a telephone
conversation?
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Part B: Deducting for
Home Expenses
The following questions
will help you or your accountant determine deductibility of home expenses
for the business. Answer these questions, and then discuss with your
accountant or with the IRS about how much of home expenses actually
be deducted.
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Yes
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No
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1. Is part of your
home used exclusively and regularly for a trade or business?
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2. Are you an employee
of the business?
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3. Do you work at
home for the convenience of the company or your employer?
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4. Does the business
pay rent for use of part of the home?
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5. Is the area in
your home the principal place of business?
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6. Do you meet clients
or customers in the home-based business?
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7. Is the business
area a separate structure?
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