Tax Time

[Jimmy]

Got a great board here with a lot of usefull info.
I'm a rookie in the business and cuts about 15 yards on the side.
Got a couple of questions on tax deductions.

1) All equipment stored and maintained in personal garage as well as
office space. Can a % of mortgage payment be deducted?

2) Can a % of Personal Phone Line be deducted as a business expense?

Thanks

[Scaper-S2k]

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Yes to both....but don't get greedy. You might be better off getting a cell phone and deducting a larger percent of that.

[Phil Nilsson]

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The office at home deduction is in widespread use with more folks working from home than ever before ... to do this deduction (properly)for the expenses of having (some) of the bizz run from the home ... do a recap of the total costs and call this recap "Supporting Schedule" ... Office At Home Deduction ... calculate the total square footage of the home itself, garage area, any other areas that are put to bizz use ... then figure what portion is personal, and what part actually used for the bizz. Apply those percentages to any costs of "providing" the area divided between personal and business use.

[Scaper-S2k]

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OOORRRRRRRR, figure what dollar percent of your home and utilities were used for the business.

[65hoss]

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When you sell there is some recapture issues to deal with. Also, as a former accountant, we always adviced against home business deductions. While it is completely legal, it is a red flag that can cause an audit. While there may be nothing to hide, an audit will cost you time and money.