Go Back   Technibble Forums > The Computer Repair Business > Business and Legal Issues

  Technibble Sponsor

Reply
 
Thread Tools Display Modes
  #1  
Old 07-02-2009, 05:59 AM
zchehi's Avatar
zchehi zchehi is offline
 
Join Date: Nov 2007
Location: Maryland
Posts: 178
zchehi is an unknown quantity at this point
Default home office

Just wanted to know if anybody claims their home office as a deduction for tax purposes, and if it really s worth it or not.
Reply With Quote
  #2  
Old 07-02-2009, 06:19 AM
Luis Luis is offline
 
Join Date: Apr 2009
Location: Tampa, fl
Posts: 71
Luis is an unknown quantity at this point
Default When isn't it worth it?

It's always worth exempting taxes, I exempted office space and auto expenses last year when I contracted for bright house. meals and entertainment, expenses etc. it all adds up. you will almost always have to pay some kind of tax if you dont file quarterly thought, which i learned the hard way. But I was able to deduct $2500. That's pretty worth it to me.
Reply With Quote
  #3  
Old 07-02-2009, 08:41 AM
SOHO-NZ's Avatar
SOHO-NZ SOHO-NZ is offline
 
Join Date: Mar 2009
Location: Wellington, New Zealand
Posts: 296
SOHO-NZ is an unknown quantity at this point
Default

I'm not sure how it works in the USA, but in New Zealand, you calculate the percentage of you total floor that your business occupies. This then allows you to reclaim that pecentage amount of all mortgage / rent, electricity, and any property maintenance costs. So even the petrol in your lawnmower is partially tax deductible!
__________________
Steve
SOHO Computer Services Ltd
Wellington, New Zealand
Reply With Quote
  #4  
Old 07-02-2009, 11:20 AM
seedubya's Avatar
seedubya seedubya is offline
 
Join Date: Jan 2008
Location: Carlow, Ireland
Posts: 3,247
seedubya has a spectacular aura aboutseedubya has a spectacular aura about
Default

Same here in Ireland, percentage of overall floor space.
Reply With Quote
  #5  
Old 07-02-2009, 11:54 AM
studiot's Avatar
studiot studiot is offline
 
Join Date: Jun 2009
Location: Somerset UK
Posts: 845
studiot is on the way
Default

Obviously anything to reduce your tax burden is only good.

They take far too much anyway.

But

In the UK at least, you have to remember another tax called Capital Gains Tax.

You pay no CGT on your residence, but have to pay CGT on any part used as a business when you sell.

There are ways round this but you need a good accountant to advise.
__________________
If it ain't broke
Fix it until it is
Reply With Quote
  #6  
Old 07-02-2009, 01:11 PM
tartis's Avatar
tartis tartis is offline
 
Join Date: Oct 2007
Location: Battle Creek, MI USA
Posts: 327
tartis is an unknown quantity at this point
Default

You can take your square footage and a proportional amount of expenses (utilities, maintenance etc...). However, I believe that there are also down-sides to this if you sell your house.
__________________
=====================================
Big Dog Computer Services, LLC
http://bigdogservice.com
Web Design, Web Hosting, Email Solutions in Battle Creek, Michigan
Reply With Quote
  #7  
Old 07-02-2009, 01:43 PM
supertech365 supertech365 is offline
 
Join Date: Jul 2008
Location: Mississippi
Posts: 116
supertech365 is on the way
Default

Definitely worth filing deductions, as your office can depreciate quickly, especially if you have business meetings and such, keeping equipment on your hard wood floors, etc. The electric bill can shoot up significantly if you have say 6 computers being repaired at a time, all day every day. In my state, if you are in the field doing work and are away from home and have to each lunch or dinner out, its also deductible. But your accountant can tell you about that.
__________________
Dynamic Technologies, LLC
Reply With Quote
  #8  
Old 07-05-2009, 06:12 AM
noah noah is offline
 
Join Date: Oct 2008
Location: Indianapolis
Posts: 164
noah is an unknown quantity at this point
Default

It is also a huge red flag for the IRS when determining audits. Take whatever deductions you can, but be sure to speak with your accountant to make sure your doing it right
Reply With Quote
  #9  
Old 07-05-2009, 06:27 AM
Jory Jory is offline
 
Join Date: Oct 2007
Posts: 940
Jory is on a distinguished road
Default

It's only worth it if it's a decent percentage of your floorspace. If you can get a ballpark figure out how much space you're using and how much all your household bills are yearly you can get an idea if it's worth it for you. Doing so adds A LOT of extra paperwork you need to keep track of, pay an account to figure, etc. If what you're saving is worth the hassle then it's a good idea to do it.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is 11:26 AM.


Powered by vBulletin®
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Technibble.com is based out of MELBOURNE, AUSTRALIA.