I Own/Operate a website, can I claim a Home Office if I work on the website in the Office? What would you do?
I am claiming the business and wondering if I should risk being audited if I also claim a Home Office deduction.
Any audit horror stories out there?
Would you do it?
I make very little income from the business (under $3,000 annually).
Are you doing this and/or have you done this in the past?
Thank you!!!
Great feedback so far…I appreciate the feedback!
Mr. Question,
I tried claiming a Home Office 1 time here is what I was told.
Needs to be a location that is either separate or you need to total the area of your home than total the area of space to come up with a percent of the total space being used.
(* This is because if you do not have a separate phone, internet access, etc. you will most likely use a percentage to calculate the space used)
If your home is 1000 sq.ft. and your office is 10 sq.ft. Than realistically you are able to deduct 10% of say electric, internet access etc. only then you also have to figure out how much time you actually used it for if less than a full day you may only get to deduct part of you 10%
This is all a real pain, I did not take the deduction as at the time I was living in a very small place and would have only saved a few dollars.
As a reference if you income is under around 54,000 you can have your taxes done online thru H&R Block for Free, go to the irs.gov site for details.
Good Luck I hope this helps a little
Home Office Deduction
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