Deducting Home Office Furniture

Anything more could be considered capitol costs.

Deducting home office furniture. There are rules when it comes to deducting office furniture. Make sure that any decorative item you deduct stays in your office to avoid potential audit woes down the line. Instead of keeping records of all of your expenses you can deduct 5 per square foot of your. You may deduct the same percentage of your utilities payments which may include telephone services electricity gas and cleaning services.

You also can only deduct furniture that is necessary and that is actually used in your business. A desk a file cabinet a printer etc. Yes after taking the safe harbor election you need to enter the cost of those assets under business expenses see instructions below. Generally when using the regular method deductions for a home office are based on the percentage of your home devoted to business use.

Office furniture and décor beyond your computer and other work related equipment you may claim a tax deduction for your desk chair coffee table and even the expensive art on your wall. For example if you repaint your home office or buy furniture for it you can claim those costs on your tax return in full. With the simplified option you may claim a standard deduction of 5 per square foot of home used. So if your office space breaks down to 10 of your home s total square footage you can deduct 10 of your home costs which could add up to a sizable chunk of change.

Choose a category that seems appropriate or continue to the page for miscellaneous expenses to enter your own description see screenshot below click to enlarge. If your office space is in a rented house or apartment where you live deduct the percentage of the rent and any maintenance costs you paid that relate to the work space. Indirect expenses are those related to the cost of owning or living in. Alternatively if the expenses you paid were to maintain the work space only then you may be able to deduct all or most of them.

First the irs only allows you to deduct 5 000 worth of furniture if you are just starting your business. However since the 2013 tax year there s also a simplified option for the home office deduction. The key to using this. How to deduct business home office furniture.

If you operate from home these costs are part of a home office deduction. The irs introduced a simpler option for deducting home office expenses in 2013. These and other items likely are used in your office. What you write off depends on whether you figure your home office deduction using actual costs or rely on an irs simplified method.