As a self-employed worker using your home as a workplace, the work-related expenses incurred through using your work as a home are tax deductible.
Calculating your Home Office Tax Deduction
In order to work out precisely how much of your home expenses are tax deductible you allocate your expenses and apportion the expense.
Claimable home expenses can include:
· Mortgage interest
Generally, deductions for home office expenses are based on the percentage of your home devoted to business use. Therefore, if a room in your home exists wholly for the purpose of conducting business, this percentage of your home is claimable.
Requirements for claiming the home office tax deduction
In order for your home office expenses to qualify for tax deduction you must regularly use part of your home regularly and exclusively for business. You must also be able to show that you use part of your home for the principle of business.
Below is a summary of the major tax incentives that Congress has put in place to encourage certain behaviours by US corporations.
US corporations and individuals are allowed a multitude of different deductions for cash outlays they make throughout the tax year. However, for technology companies and individuals with tech-based hobbies, it can be confusing as to what expenses can be deducted. Below is a brief summary of what can and cannot be deducted for US tech companies and tech-interested individuals.
As a company owner it is common to employ family members, such as a spouse. The employment tax requirements family members can vary to those that apply to general employees.
As a US expat, charitable contributions can be made to reduce your tax liability. American expats living abroad can make a charitable donation to a wide range of US and foreign charities. However, it is essential to follow several IRS rules to make sure that charity donations are tax deductible.
Actors, directors and performers are unique when it comes to the world of taxes. We specialize in the acting profession, providing advice on the special tax rules that apply to individual actors, groups of performers and companies.
The type of business you operate determines what taxes you must pay and how you pay them. Below are five general types of business taxes:
Who must pay estimated tax?
- Excise Tax