Working from home and taxes...
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Anonymous
| Any tips on what is tax deductible? DH will be working from home 100% soon in a bedroom we're using as an office. I've heard certain things (Internet usage, electric bill percentage,etc) are tax deductible but want to know what receipts to save. Are things like a printer for him to use (company doesn't provide) something? Any tips are appreciated!!! |
Anonymous
| OP, all of the items that you mentioned of course are tax deductible, but beyond any very general, and obvious, advice that you will get here, please consult a tax professional about this. DCUM is NOT the place to go for "tips" on getting tax write-offs. The IRS looks at this stuff closely and you don't want to be fooling around. |
Anonymous
| Most is only tax deductible if its at the convienence of te employer. |
Anonymous
| IIRC some things are tax deductible on a pro rata basis and some things are tax deductible only if used 100% for the business. Definitely get an accountant. |
Anonymous
|
OP here, we plan to get an accountant but before I save every receipt from everything, I'm hoping someone who works from home can advise which ones to save so that when we get an accountant I can have things more organized.
Obviously taking tax advice from DCUM will not avoid an audit! |
Anonymous
| You need to talk to a CPA and get specific advice. A lot depends on your situation. |
Anonymous
| Have you checked the IRS publications on business deductions? |
Anonymous
| And save every receipt anyway. |
Anonymous
| I think there may be a lot of home office deductions you can take if your husband is working 100% from home, but definitely check with a CPA. |
Anonymous
Internet usage certainly won't be if you're also using the same connection to hop on to DCUM |
Anonymous
| Get recommendations from a friend and set up an appointment for a consultation. Should run a few hundred dollars at a reputable firm. If you google search IRS and home office deduction, you will find the IRS publication that addresses this. It has a flow chart that walks through questions and will tell you whether you qualify for the deduction. It isn't that easy. If you are using the room for anything else (even storage), then it isn't being used exclusively as a home office. Also, if you own your home, then you need to depreciate part of your home and it can cause problems later when you sell. Lots of my clients think it's a great idea and then they find out that either they don't qualify or the deductible amount isn't worth the hassle. |
Anonymous
|
I owned a small business AND I currently WAH for my employer full-time during the work week.
I only deducted that stuff when I owned my business, and I had separate internet, phone, etc for the business. You should ask an accountant. Mine said I can't deduct for my WAH job because I'm using my personal internet, etc. Plus, I do not take the home office deduction because I'd have to pay it back when we sell our home. |
Anonymous
| You can deduct the percent of your mortgage or rent that is your office |
Anonymous
LOL does the irs monitor the internet's |
Anonymous
| Look at the rules for the home office deduction. If he's using a bedroom as an office then he can't get the deduction -- that is if it's both an office AND a bedroom it isn't eligible. It has to be used 100 percent in support of the business and having a bed in it will disqualify it. If it is eligible you have to calculate what proportion it is of your house, either by percentage based on sq ft or that it's e.g. 1 out of 8 rooms (of similar size). Then you will be able to deduct that portion e.g. 1/8 of your housing costs, mortgage, bills etc. You can also deduct the direct costs for the office -- so if you do any work to that particular room then it is deducitble. If you do work to the entire house that also benefits that room, e.g. a new roof, then you can deduct 1/8 of the cost. Check the IRS website. It's very helpful. |