I may be out of date but the home business deduction used to be a major gotcha. If nothing else it is an audit red flag. Even though I don't cheat on my taxes I decided not to go near it.


>Do you run your business out of the home? If so, you can deduct up to 25% of house expenses (taxes, utilities, etc) unless that's been taken away.
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>And, as an 'S' corporation, you're already deducting business expenses from your total income, are you not?
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>**Not trying to be provacative, just asking**
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>>Obviously most will not pay close to the percentage listed above - unless they are in the lowest bracket and have no means to adjust their tax liability as most in the higher levels do. In reality, the highest levels manage to pay a lower percentage -
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>>Andy and I do. Our house is paid off and we have no children, so we pretty much have no deductions.
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>>Personally, I don't think anyone making less than or at the poverty level should pay taxes period. As long as they are working, they are contributing - that means an actual effort. I think tax rates should go up with the greater the means to pay. However I do not think it should go so high as to negate your increased effort to increase your return.
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>>Very well said.