Can you write off home office 2021

Posted by Damian Roberti on

"Home Based Business Tax Deductions 2021" : for "Cottage Food Businesses", if you are a food entrepreneur and you are selling food from home. These are going to be some great home-based business tax deductions for the year 2021. Now, keep in mind, these are not in any specific order, but a lot of these are definitely ones you need to keep track of. The room that you're operating your business from, a portion of the square footage in your kitchen can be used as a tax deduction. If you have a separate room or bedroom, that is a office. When looking for more infomortion Google "How much can you write off for a home based business"". "What deductions can I claim for 2021". and also "What is the standard business deduction for 2021"" . These searches will help. 


In some states, cottage food businesses are not required to have even permits or licenses, believe it or not. But I highly recommend that you create an LLC for liability purposes. Creating an LLC will allow you to have that protection. They can only go after somebody gets sick or gets an allergic reaction and they want to sue you. Some states don't require permits or licenses, but some actually do.

As you operate locally, and you go to these events, you need to keep track of those receipts because that is a business expense. Under the cottage food law, you have to obviously have your product packaged. If it's a bag, a container, a glass jar, it doesn't matter what it is, but the food packaging that you're paying for, keep your receipts. That is a tax deduction for your home-base business. Next up, your ingredients.

""What is the personal exemptions for 2021" is a huge list of what can be deeucted for you persoally. 

Obviously you're going to have ingredients when you're preparing, let's say a cake or cookies or any type of edible item. Those receipts need to be kept because those receipts are going to be tax deductible. Even if you have a website, you have to pay a service to keep it live. That could be anywhere from 30, 40, even $50 a month. Advertising, brochures, business cards, those are all expenses that are tax deductible. You may also want to search out "Home office tax deductions" , "Can I Use my home office as a tax deduction". 

Online courses and classes are also tax deductible as are books and periodicals. Any permits or licenses that you would need or are required to have, and not even under cottage food. Any permit or additional licenses to what you're doing, making your food product from home, all of that are business expenses. Every single mile you put on your car or truck, because of the way you're operating your business, keep track of those miles, because that is a tax deduction as well. If you have a business credit card dedicated to your cottage food business from home, you have the opportunity to take that interest and check into that, and bring it up to your accountant and ask them about that too. Keep in mind additonal resources like. ""How do I qualify for a home office deduction", "What home improvements are tax deductible 2021"".

Any gas that you put in your vehicle, you need to keep receipts for it. That is being used for your business. If you're using a dedicated, like I said, van or a truck or a car, and that is something that you are using 3 or $400 a week in gas because you're doing a lot of events or local stuff, that is also an expense. If you've registered a domain name with Weebly, Shopify, whatever that may be with your web website hosting, they're gonna charge you annually for that. That is something to that can be used as a business expense.

There's quite a few others that I would imagine that you can definitely do as well. But I think these are the most important ones, especially when you are creating a home-based business in 2021.