Hi,
I am starting a new job were I work from home next year. Can anyone give me a brief idea of what receipts I should start saving for write-off the next year? I will also be using my own car to go visit clients, can I write of gas, car payment, etc? Thanks I am a total novice at this stuff!

Are you working for home for another company or working as an independent contractor or what?

You can't write off the car payment unless its used EXCLUSIVELY for business purposes. You should keep a mileage log of all trips taken for business purposes, then may then be able to take a mileage deduction for them.

I would suggest getting a good accountant to help you keep track and with a good accountant for our own peace of mind we also use the computer programme Quicken which takes care of our finances but you have to be diligent in making entries. Our accountant can't do without the information we use on that programme at tax time.

Hi
I had a home business myself, depending on the business you are having you should save all the gas bill, keep a record of the milleage, then keep the hydro bills, gas bills, house insurance, if your car is in lease you might be able to write it off, if not---oh well, car loans are not included, office supplies, keep the receipts, that include new computer, printer, cartridges, paper, phone bills.
In my case I had a homedaycare so we were aloud to write off food as well as toys, child care supplies-blankets, furniture etc.
Hope this helps
Moon777

All good advice, espcially the part about getting an accountant's (or a competent tax professional) help.

Except you cannot write off the whole car payment, only the portion of interest that you pay that is directly related to the percentage of usage business vs personal

I was told that my computer, fax machine, extra phone line was to be used separately from my home life. I also was told that In order to claim a home office I had to have a area set up just for that. If you see a tax expert this year they will give you a nice list /envelope for receipts etc.. to start you off. I was told I could claim a portion of my gas and electric bill,home owners insurance anything I bought to fix the home office up desk, chair, paint, office supplies, phone bill for second line.I also got on turbotax and looked at their information... it helped me out quite a bit to be able to read and reread some of the information.

Quote:

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Originally Posted by Jessmetz

Hi,
I am starting a new job were I work from home next year. Can anyone give me a brief idea of what receipts I should start saving for write-off the next year? I will also be using my own car to go visit clients, can I write of gas, car payment, ect? Thanks I am a total novice at this stuff!

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Are you a W2 employee or an Independent Contractor (will get 1099)?
For an Independent Contractor the business related expenses are deductible on schedule C (Form 1040). For a W2 employee, the business related expenses that are more than 2% of your AGI are deductible as itemized deduction on schedule A (Form 1040).

About car mileage, you can deduct it at standard mileage rate at 48.5c per mile for 2007 or you can deduct actual expenses based on business mileage. Commuting miles are not deductible.

If you have a portion of your home only for the use of your job, then you can claim home office deduction. You can also claim proportionate for utilities.

All good advice.

However, you REALLY need professional tax help.