Small business uses home for office

Question

Aug 13, 2008, 08:06 PM

hamr

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Join Date: Aug 2008

Posts: 1

Small business uses home for office - Tax write offs?

What tax write offs are there for a selfe-mployed person who uses there home as the office and admin area of their work? Links to info?

Answers

Aug 14, 2008, 08:49 AM	#2

AtlantaTaxExpert Senior Tax Expert Join Date: Feb 2005 Location: Atlanta, Georgia Posts: 13,322	Hamr: WHOLE BOOKS have been written about the deductions and tax writeoffs available to the self-employed. There is no way we can adequately cover this subject on this forum.

Aug 14, 2008, 11:59 AM	#3

ScottGem

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As a person who has run a small business out of my home for over 20 years, I do not recommend taking the home office deduction. The tax deduction is very small and the requirements stringent. It will open your return for an audit and you need to dedicate the area you claim 100% for the business. In addition this means that a protion of your home is commercial property which will have an effect when you sell it.

Aug 14, 2008, 12:06 PM	#4

AtlantaTaxExpert

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Location: Atlanta, Georgia

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I cannot agree with the blanket statement that Scott posted.

Each individual must consider all aspects of his/her home-based business to determine if taking the home office deduction is worthwhile or not.

He IS correct in stating that the requirements for claiming the home office ARE very stringent. However, the benefits CAN be substantial and may be definitely worthwhile.

Each case must be evaluated separately on its own merits.



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