I am going to start selling games online through my website. I will get incorporated,etc. as and corporation. I was wondering, can I write off my rent and utilities as a business expenses?
2007-04-11 07:53:11 · 6 answers · asked by planetnoelle 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
IRS Publication 587 (linked below) deals with claiming expenses relating to using your home for business. You'll first need to see if you qualify (is the room use regularly and exclusively for business, etc), and if you do, you can just follow the directions in the publication to determine how much of your expenses can be claimed and how to report it on your tax return. Good luck! :-)
2007-04-11 13:27:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
What you're asking about is covered by the "home office deduction".
You need to check with your accountant or tax expert for details, but basically you need a dedicated amount of space in the home that is ONLY used for the business, and you can write off the pro rata share of rent and utilities. Like, you have a 10 by 10 room in a 1000 sf apartment, you can write off 10% against the business income.
2007-04-11 08:30:45 · answer #2 · answered by open4one 7 · 2⤊ 0⤋
Measure the area of your apt/house that is used for business. find out what percentage that is of the total square footage. thats what you can write off as rent. also estimate how much internet is used for business, and anything else you may use for business/personal and deduct the business percent.
2007-04-11 08:46:28 · answer #3 · answered by flash_override75 2 · 0⤊ 0⤋
You can deduct them as business expense. Write-off is a different term that means that your taking a loss . So, yes. you can deduct them.
2007-04-11 15:59:55 · answer #4 · answered by emulwa 2 · 0⤊ 1⤋
For an office, yes, for your personal living space, no.
2007-04-11 08:10:01 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Try: http://www.exooom.com
2007-04-14 04:51:25 · answer #6 · answered by majeed 2 · 0⤊ 0⤋