If you expect to have business expenses that you will want to deduct at the end of the year, it would make sense to open a separate charge account or checking account for your business expenses. Then, throughout the year, use only that account to pay for business costs. At the end of the year, you can then easily itemize your deductions by using the statement for that account.You would be able to deduct business expenses without opening a separate account, but you would have to be very careful with your record keeping throughout the year.
 You will need to justify any expenses that you incur as business expenses, to be able to claim them as deductions. Keep receipts for all such expenses. You may need these receipts to complete your tax return at the end of the year. You may also need them in case you get audited by the IRS after filing., In many cases, you are entitled to claim a deduction on your federal taxes when you use certain personal property for business purposes. To be able to claim business deductions, you need to keep very good records of the amount of time and space that you use for your business. In particular, you can claim deductions when you use the following items for business purposes:Home office. If you establish an office in your home, you are eligible to claim it as a deduction. In order to claim this deduction, you must dedicate the office space exclusively for business purposes. You can then calculate the fraction of your entire house that this office comprises.Your car. To deduct for using your personal car for business reasons, you need to keep very careful records. You will need to measure the total mileage that you put on the car in the course of the year, and measure the mileage that is used exclusively for business purposes. From this data, calculate the percentage that you used the car for business, and you will be able to claim that fraction as a deduction.
 You can find the form you need by going to the official IRS website at www.irs.gov, and then navigating to the “Forms & Pubs” tab. Search for Form 8829 and the instructions that accompany it. Complete the form to report your deductions.
Keep separate accounts.
Save receipts.
Keep records of business use of personal items.
Use IRS Form 8829 to claim business deductions at your home.
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