If I have a painting business and I use my basement for storing, mixing, painting etc can I deduct?

Question

I thought that the actual work for the business had to be done on the premises. i.e. we use space for preparing for a job but the actual job is done outside the home. I use a portion of my kitchen for my office where I do all my book work taxes etc for the business. But I also use that area to eat and sit and visit with neighbors. I am confused as to what is considered deductable? thanx

Answer 1

The IRS defines a home office a s a separate room where the door can be closed thus isolating the office from the rest of the home. If you meet this criteria, you can then write off the worth of that room. i.e. if you have seven rooms in your home, and your office is one of them, you can write of 1/7 of your household expenses. This should hold true for your basement as well, but, be sure you consult an accountant before you file for any of these deductions.

Answer 2

If you create a physically separate space for paint storage and mixing for your business (i.e., you can't also put your personal paint there), then yes. That space is used exclusively for a legit business purpose.

The kitchen is not allowed as a deduction, because it's a kitchen. If you had a desk within the kitchen that was used only for your business, then you'd be able to deduct that specific space.

The problem, of course, is knowing what to deduct. For example, if you have a 5x5 area in your basement for storage of paint, what % of your house is this? It's likely small enough that you'd have very little to deduct.

As a separate issue, if you are storing and mixing paint for a business in your basement, you may need to get is zoned for this use. And that might mean adding larger egresses, safety equipment, etc.

Answer 3

Thats a deduction...

Answer 4

definitely can... especially since it's a vital part of your business....

ask yourself this:

would i be able to do my business without having that there? it's a necessity, so yeah, it's a write off.

Answer 5

Yes you can. You need to know sq. footage to figure it in. You also can right off part of your utillity bills.