Can I use cost leasing at space on home for business for accounting?

Question

Can i use my space at home to do business with deduct expense for the leasing cost for the accounting matter?And how do we calculate the cost of leasing? My home still in mortgage.
If anybody know, I greatly appreciated it.

The house is not rent but buying house, i pay mortgage every month.

Answer 1

You can only claim space at home for a business if that space is separate from the house and is used 100% for the purpose of the business only. separate as in garage, room with doors, etc. A dining room with wide open areas into hall and kitchen is not a separate room. But a bedroom with door is.

If the space is used only for business, then the rule is the square foot of the space. To be proper have a home inspector come out and give you the exact sq. footage of your house and that room. Then by dividing your mortgage by your total sq. ft you know the value of each sq ft. Then that value by the sq ft of that room = your business rental space fee. You can measure this yourself but a home inspector actually will measure by the studs, not drywall. In turn giving you more space to write off.

Being self employed I do this trick. I live in apartment so I get a 2 bdrm. Making the master my office space I write off slightly more than 1/2 my rent each month as business rent.

Don't forget to put cell phone in business name, write off. Buy all your computer items, paper, pens, etc by business credit or debit card, write off as office expenses. Even shirts, pants, shoes you wear for work, as that is uniform expenses.

Answer 2

Ajimmy,

Technically you can do this.
Should you do this ? depends if u like IRS audits?
home space costs is a redflag for audits.
dot ur i's and cross ur t's. ur return on investment is this deduction often is not worth it.
do some serious homework.