A new book, Home Business Tax Deductions: Keep What You Earn, by attorney Stephen Fishman (Nolo, www.nolo.com, $34.99), is a tax primer designed to help people who work from home keep their taxes to a legal minimum by taking advantage of the tax deductions for home-based businesses.

The book explains how to deduct home office costs, startup and operating expenses, health insurance and medical bills, car and travel expenses, entertainment and meals, inventory, and equipment. It shows how to avoid common deduction mistakes and how to keep careful records to back up every deduction.

It also covers the latest tax changes for small businesses, including the following.

  • Big increases in the amount of equipment and other long-term property you can deduct each year
  • New rules permitting owners of home-based businesses to deduct the cost of nonprescription medications
  • Health Savings Accounts, a tax-advantaged way to pay for health care
  • Legal changes allowing home business owners who take deductions for home offices to sell their homes without paying extra taxes.