Did you know you can deduct many of your office expenses related to your home office?
Heat, lights, water, telephone, and internet are all legitimate deductions, up to a point. While you won’t be able to deduct 100% of your utility bills (as the vast majority of them are used for your living space), you can deduct a percentage of them.
You can also deduct a percentage of your rent/mortgage payments for the portion of your home that you use for your home office. (Again you won't be able to deduct 100% of your payments b/c it's also your living space.)
These deductions can be applied to everyone who works from home, no matter if you’re self-employed or work for a company.
Things like computers, desks, and other related expenses, however, are not deductible for individual employees. Especially if you were reimbursed by your employer for the items you purchased.
If you started a new business in 2020, let me first say congrats on your entrepreneurial journey. Starting a business can be costly. Thankfully, there are a few deductions that you can take advantage of. These can include advertising on Facebook & Instagram ads that you run periodically, marketing fees, legal and professional fees, telephone and internet, and more.
You can also deduct your home office furniture such as your computer chair and desk. Even your office supplies can be deducted; we’re talking about pens, pencils, paper, printer, etc. If you need to purchase a new laptop/computer, that can also be deducted, as well as computer peripherals like a mouse, keyboard, speakers, headset, monitor, etc.
As with both your rent/mortgage payments and your office expenses, if you use any of these in your personal life (like telephone and internet services), you can only deduct the percentage you use for professional reasons.
Last day to file taxes is Thursday, April 15th.
*This is not tax advice! Check with your tax professional/CPA for further clarification on what deductions you qualify for.
Happy tax filing and I hope to see you on the side - WHERE THE MONEY RESIDES!!!