If you own a business and you're working from home (full or part time), you should be deducting these expenses.
Just like you would be able to deduct an office space if you were renting one, you can deduct the home office space where you work. This includes the space and the objects needed to make the space useful and productive.
Let's break these down.
Your actual home office: the percentage of your home that you use for 100% business use can be deducted (related portion of rent expense or mortgage interest), related utilities, maintenance & repairs
Office equipment: any furniture or equipment you need to set up your office for maximum efficiency (desk, chair, printer, industry related equipment, etc)
Office supplies: all supplies you need to do your job (pens, paper, post-its, etc)
Software & applications: any applications or software needed to keep your business running smoothly (accounting software, CRM, inventory system, website, etc.)
Business related vehicle use: the percentage of your vehicle that you use for business can be deducted (related portion of auto lease payment or auto interest), related fuel, maintenance & repairs.
Business meals: meals during meetings used to acquire new business
Professional education: courses, books, or any other resource you use to further your profession
Marketing & advertising: print or online ads, business cards, graphic design
Professional services: accounting & legal fees
Business related travel: any airline tickets, hotel stay, car rental or taxi service related to the business your in is deductible
Making sure that you are taking advantage of all possibly deductions helps you save money on taxes and reinvest in your business.
Remember to be reasonable with the expenses that you deduct on your tax return. Stay away from deducting any unreasonable or unjustifiable amounts that would not hold up in an audit.
Want more tips like these? Subscribe to the monthly newsletter!
(& don't forget to follow along on social @prettypennyaccounting)
Feeling unsure or worried about the accounting side of your business? Download this free guide with 3 steps to financial confidence in your business.
Ready to hand over your accounting? Download my services guide and let's work together!