Here are some tax saving tips for the Home Office.
- October 4, 2016
- David Greene
- Comments Off on Here are some tax saving tips for the Home Office.
There are definitely some tax advantages to the home office deduction if it is set up correctly. Here are some pointers to help you get the most benefit: (1) the space must be exclusively and regularly used as the principal place of business; (2) there is a simplified option that most businesses can use –instead of adding up all expenses, you can take a standard deduction of $5.00 per square foot of workspace, up to 300 square feet; (3) if you choose to use expenses, then a portion of the utility bills, phone and internet costs as well as office supplies and furniture, if needed for the office will be deductible; (4) mileage from the home office to business sites will be deductible at 54 cents per mile; (5) finally, and most important, keep very good records of all expenditures claimed as deductions in case you are audited.