According to data compiled in tax year 2009, more than 4 million Americans claimed the home-office deduction on their tax returns. That’s about 3 percent of the total 140 million returns filed in 2010. The number is likely to increase this year, with business startup rates having increased substantially in 2011.
Kathy Pickering, executive director of the Tax Institute, research and analysis division of tax-services provider H&R Block (HRB), says the average home-office deduction is valued at more than $2,600. Yet many taxpayers are unclear about how to claim the deduction, or they worry that if they do, they’ll face an IRS audit. Pickering says that although the home-office deduction is scrutinized closely, it should be used by those who are eligible.
U.S. small businesses that initially rushed to Chinese factories to get their products made are now dumping them for American manufacturers.
And the shift is gaining traction, said industry experts who match U.S. small companies with domestic firms.
A computer is only as useful as the software you run on it, so you should keep your PC’s software current–and not necessarily with the latest version of a program that’s getting long in the tooth. Sometimes, switching to a new application can help you speed up your work or make your system more efficient.
PCWorld examined software tools for handling 11 categories of common (and essential) PC tasks: presentations, financial planning, note taking, file management, photo editing, email, word processing, music organizing, remote access, cleanup/optimization, and backup. In each instance, we identified the dominant program, a promising challenger, and (where applicable) an online alternative. Our category coverage invites you to consider the pros and cons of each type of contender: incumbents, up-and-comers, and Web apps.
If you use your car for business, you may be eligible for valuable tax deductions.
Drivers have a choice of how to calculate the deduction. When in doubt, crunch the numbers both ways to see which produces the bigger deduction for you.
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