2007-04-06 02:30:17 · 9 answers · asked by dawn c 1 in Business & Finance ➔ Taxes ➔ United States
yes, provided that space is used only for business.
2007-04-06 03:18:31 · answer #1 · answered by Ola 4 · 0⤊ 0⤋
Yes. Get yourself a form 8829. You take a percentage; determined by office size (10 x 15=150 square feet) and dwelling size (30 x 50=1500 square feet). Divide the 150 by the 1500 for a percentage of 10%. Further down on this form you list your property taxes, mortgage interest, utilities, insurance, etc.(or rent if you you don't own). If the total of all expenses was $ 4,500 then 10% of that or $450.00 is what you could deduct for a home office. The form 8829 is fairly simple to use; just start at the top and work down.
2007-04-06 09:39:15 · answer #2 · answered by acmeraven 7 · 0⤊ 1⤋
Yes, as long as that space is used ONLY for the business. If it is used at all for personal use then it is not allowed.
Essentially if you use 10 sq ft of floor space and your house is 1000 sq ft, you can deduct 1% of all your housing costs: utilities, repairs, unless any of these items apply ONLY to the business use of space in which case you can deduct 100%.
This is one of the IRS's favorite items to flag for abuse, so tread carefully here.
2007-04-06 09:36:31 · answer #3 · answered by Anonymous · 2⤊ 0⤋
Only if it is completely isolated from any space used for any other purpose. Such as a desk and files in a room also used for a guest bedroom when needed wouldn't qualify. Nor would a corner of a den set up as an office or any similar situation.
2007-04-06 09:43:23 · answer #4 · answered by Patricia S 6 · 1⤊ 0⤋
Most definitely. You will need to know the dimensions of the space you are using. Based on the total square footage of your house, you will be able to deduct any expenses incurred related to your business, including utilities, mortgage interest, etc.
2007-04-06 10:05:08 · answer #5 · answered by msshaden 2 · 0⤊ 0⤋
The answer is yes, but talk to an accountant or tax person on details
2007-04-06 09:33:09 · answer #6 · answered by biscuitperifrank 5 · 0⤊ 0⤋
Definitely worth finding out whether there will be any capital gains tax implications. For this reason it can be smarter not to bother if you own your own home that is.
2007-04-06 09:35:08 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I could when I ran my home daycare. I would say yes, but ask a tax professional to be sure.
2007-04-06 09:39:14 · answer #8 · answered by teddy bear 2 · 0⤊ 0⤋
yes
2007-04-06 09:33:28 · answer #9 · answered by Jo Blo 6 · 0⤊ 0⤋