So, you’ve decided that starting your own business from home is the best option for you. Did you know that you can make tax deductions for items in your home office? It is best to talk to an accountant about this, but here are some of the types of things you can get back through your tax payments.
The Cost of the Room
When a room is set up specifically for your business, you can claim the costs from this through your tax. This includes part of your rent or mortgage, as well as the costs to heat and light the place. You will need to think about the amount of hours you spend within the room and the amount of rooms within your house to calculate the percentage of your overall costs that you can deduct.
Costs for Hosting Clients
If you have to meet with clients, you may have a separate space for this. The costs towards this can also be deducted from your tax. The travel to these places for business meetings also count. However, travelling to and from your place of work (your commute) is not tax deductible.
Phone and Internet Costs
You will need to have an internet connection, and there are chances that you need a phone line too. You can deduct these costs from your tax. If you use your home internet connection, you will need to work out how much of the internet use is for work and how much is for personal use. This gives you the chance to work out the percentage of the total costs that can be deducted. When it comes to phones, landlines and mobile phones count.
Travel for Business Meetings, Events and Other Business Needs
You may find a conference that will help you improve your marketing. There could be a seminar on identifying your current industry trends. All of these are events that you attend for business, meaning that the costs for them can be deducted. Likewise, the cost for the travel to them can also be deducted from your tax. Any food that you eat while there will also usually count as a tax deductable purchase.
Stationary, Paper and Other Office Costs
You’ll need pens, paper, printer ink and much more when running your home office. Where these purchases are solely for business, you can claim the full amount back through your tax. When you use them for other needs too, you will need to work out the percentage of use for business and claim that percentage through your tax.
Computers, Desks and Chairs
Items like computers and desks are design to last over a number of years. Anything that should last at least two years will be classed as a special purchase. While they can be deducted from tax, it is the depreciation that is deducted. This is something that you really need to talk to your accountant about to make sure you get the right amount.