As the end of the year approaches, it’s time to start thinking about home business tax deductions. And one of the things you can deduct is your home business Internet use.

For many people who work from home, the Internet is a lifeline. However, it costs money to get a fast, reliable Internet connection. The good news is that you can deduct some of your expenses. Many people don’t want to get a separate Internet service for the home office, and that is okay. You can actually deduct a portion of your Internet costs.

Figure up how much you use each month for Internet, and then take a percentage of that. For example, 85% of the Internet usage in my home is for my business. We pay about $28.81 for Internet, what with access fees and equipment rental. So, I multiply .85 by $28.81 and end up with $24.49. For 12 months, that’s $293.88 that is eligible for deduction. This amount should be added up with other home business expenses. It should be part of the P&L statement you have if you are a business, or added on Schedule C if you are a sole proprietorship.

And, of course, since I am not a tax professional, it is a good idea to double check things with a tax professional or with the IRS.