In addition to receiving a tax deduction for the portion of your home expenses that applies to your home office, these expenses for your home office are also tax deductible:
1. Phone. In order to write off your phone expenses, you'll need to separate your home line from your business line. If you're seeking a landline phone, you can score a deal for about $30 per month. However, you can also get a second line for your cell phone in order to offer you more flexibility as to when and where you take business calls.
• An affordable alternative to a landline phone would be MagicJack. It costs $40 for the initial purchase of the device. And the recurring costs are $19.95 per year thereafter. MagicJack operates under VOIP (Voice over Internet Protocol); therefore you need to plug it into a computer in order to turn on the reception for your phone.
• If you need more mobility, most cell phone companies allow you to add an additional line to your account for as little as $10 per month and you can share the minutes given on your primary line.
2. Internet. Whether you work strictly from home or work on your business from home during your spare time, it's highly unlikely that 100% of your internet use is strictly for work related purposes. Therefore, you won't be able to deduct your internet bill in its entirety.
• Deduct your internet charges according to the percentage of its usage that is dedicated to your business use.
3. Home office furniture and equipment. You can also take deductions for your home office furniture and equipment designated for business use:
• Desks, chairs, and other furniture
• Filing cabinets
• Computers and monitors
• Laptops
• Printers
• Fax machines
• Software you need for your business
4. Maintenance and repairs. Any maintenance and repairs strictly for your home office, such as new carpet or paint in the office space, is 100% tax deductible for your business.
5. Your child's allowance. Pay your children for keeping the home office tidy. Even a small child can dust the desk and computer! It encourages responsibility in your children and you get a tax deduction for what you pay them.
• Let older children help you keep your files, papers, and receipts organized. They can even enter your daily income and expenses into your bookkeeping software.
• If your child is under age 17, you can employ them without paying social security on their wages.
If you have any questions or would like a complimentary one hour tax review you can reach our office at:
VastSolutionsGroup.com
Phone: (888) 808-8278
Email: info@vastsolutionsgroup.com
Monday-Thursday 8:00 AM – 5:00 PM (Pacific)
Thank you for listening!
Kenner French, is a former small business contributor at Forbes.com, author of three books, an executive at AI-focused VastSolutionsGroup.com, a keynote speaker, and a Dave Matthews Band fan!
