Steps To Start
Click on the links below to walk through the important steps to starting a business.
- Step 1: Accounting Method
- Step 2: Business Expenses
- Step 3: Business Start-up Costs
- Step 4: Business Use of Home
- Step 5: Car Expenses
- Step 6: Depreciation Car Expenses
- Step 7: Employer Identification
- Step 8: Estimated Tax
- Step 9: Forms of Business
- Step 10: Recordkeeping
- Step 11: Kinds of Records to Keep
- Step 12: How Long To Keep Records
- Step 13: Self-Employment Tax
Start A Business
Step 4: Business Use of Home
You may be able to deduct the expenses for the part of your home you use for business. The business use of your home must meet strict requirements before any of these expenses can be taken as business deductions. You can take a limited deduction for its business use if you use part of your home exclusively and regularly:
- As the principal place of business;
- As a place to meet or deal with (including administrative use); or clients in the normal course of the business; or
- In connection with the business, if it is a separate structure not attached to the taxpayer's personal residence.
- The use of part of your home for the storage of inventory, and
- The use of part of your home as a day-care facility.
If you file Schedule C (Form 1040), use Form 8829 (Expenses for Business Use of Your Home) to figure your deduction.
