“Stay home and stay safe” has been the common phrase these last few months because of the pandemic development. Are you using your home for business? If so, you can deduct those expenses. Small business owners have been asked to run their company from their homes. Here at Mazuma, we want to help all of our clients stay compliant, stay organized and, most important save on taxes. Writing off you home office can help you save money during tax season. Here are some guidelines and tips to help you take advantage of your home office:
Can you claim your home office?
There are two requirements for a home to qualify for a deduction.
- Do you regularly use a part of your home to conduct business?
- Is this place the principal area that you use for your business?
If you answered yes to both of these questions, your home may qualify. So, if you use your home for clients, customers, interviews, or any use of your business, even if you carry some other business at another location, you can deduct your expenses.
Calculating your home office.
Is your home office 300 square feet? Great! You opt to take the simplified deduction. The IRS gives a $5.00 deduction per square foot for any space that is used for business (maximum of $1,500 for a 300-square-foot space). The simple way to calculate is to multiply the square footage by 5 and that is your deduction. For example, if you are using an office that is 150 square feet, with the $5.00 deduction, that amount would be $750.00. It’s that simple!
Some things to consider as you take advantage of your home office, qualifying for this deduction is determined each year. Depending on your business type will determine the deduction. We hope you stay safe and well during this pandemic. Take advantage of your home office and please contact us to speak with a tax professional at email@example.com or visit our website at mazumausa.com