Home Based Business???

What is the name of your state? CA

I was laid off last year and collected unemployment benefits which will run out this week. I got a call about some free-lance work - I am a graphic designer - and have the following tax questions:

Can I establish a home based business, and take the usual deductions, in the SAME year (2003) that I collect unemployment?

Can I call it a home based business if I do some free-lance design from my home AS WELL AS on site.

Please advise.

Thank you in advance!

Mrs. Henderson

Yes & yes. I recommend you visit a tax preparer for help setting up your books & advice on what records to keep, & have him/her prepare your 2003 return to make sure it's done correctly.