Businesses that are run from home can claim deductions on their tax return.
1. Cost of room’s utilities
These claims must be apportioned and if the portion is based on anything other than the floor area the claim must be clearly documented.
2. Phone costs
If a telephone is used exclusively for business, owners can claim for the rental and calls but not the installation costs.
3. Decline in value
This can apply to items such as desks and computers. If the equipment is also used for personal use then the claim must be apportioned.
4. Costs of owning the house
Owners can claim the portion of these costs that relate to the room that is used as a place of business. The most common method to work this out is using the floor area as a proportion of the whole home.
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To discuss home based businesses and the subsequent tax deductions you can claim give Leenane Templeton a call.