Working Solo Newsletter (http://www.workingsolo.com/) recently devoted an issue to June Walker, a tax and financial advisor to solo entrepreneurs since 1979, offers the following tips on home office deductions:
"1. If you use an in-town studio and home office, both are business deductions. Even if you work out of two or three places, if each is used exclusively for your work then they are all legitimate deductions. ... both the studio in town that you rent and the spare room at the beach rental where you do your three-hour weekend blogging routine are legitimate work locations and qualify for business expense deductions.
2. ... no office sharing allowed. Keep in mind the all-important IRS exclusive use rule: that your office must be yours and yours only. If you're the designer for Clyde Client and your wife handles the tech side of Clyde's site and both you and your wife use the same office -- sorry, no deduction. Here's one way aroudn that. Make one spouse the employee of the other. There are a lot of other benefits to hiring your spouse.
3. Work at home to increase your business transportation deduction. If you do most of your work outside your home you may still deduct costs for the area of your home used exclusively and regularly for your business, no matter how small the area. And by having two work places you'll increase your deduction for auto use or public transportation costs. ..."
You can learn more about home office deductions and receive a complimentary copy of June's List of 100+ Typical and Unusual Self-Employed Business Expenses by visiting June's web site (a treasure-trove of helpful information for the self-employed) at http://www.junewalkeronline.com/. June has also authored Self-employed Tax Solutions. This book answers many of the most common self-employed questions in easy-to-understand language.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment