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tax deductables

Discussion in 'Business & Tax Advice' started by mandude, Jan 3, 2011.

  1. mandude

    mandude Jr. VIP Jr. VIP Premium Member

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    I know utilities are tax deductable (for a home office), but is it the WHOLE utility bill (electric) or just a portion? My bookkeeper told me its the whole bill, but that seems fishy to me. I know rent is only a % which is your office. So what about utils?
     
  2. zone69

    zone69 Junior Member

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    It will not be the same in different tax jurisdictions, but in Canada I can only claim a percentage based on how much of my home is used for a home office. So if I use 15% of my home for office space, I claim 15%.

    In Canada, you have to be aware that if you do write off a home office, then the percentage of home declared as office space would then not be exempt from capital gains on your principle residence. This would trigger a capital gain on your home upon selling it, based on the percentage written off.
     
  3. mandude

    mandude Jr. VIP Jr. VIP Premium Member

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    I reside in PA, anyone know that tax jurisdiction?
     
  4. mandude

    mandude Jr. VIP Jr. VIP Premium Member

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    I reside in PA, anyone know that tax jurisdiction?
     
  5. BorisTipsIt

    BorisTipsIt Regular Member

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    Just the percentage you use. Not all of it. Don't use your bookkeeper for tax advice. They have just enough knowledge to really get you in trouble. IRS audit rates were up 11 percent last year, so do you really want to risk it over a couple hundred bucks?

    Up to you.
     
  6. suga051982

    suga051982 Regular Member

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    Its only the % of your house that you use for working.
     
  7. volund

    volund Senior Member

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    Positive it is a % not the whole thing, bookkeeper is on crack.

    Before you actually claim that home office deduction you should read the rules yourself and make sure you meet ALL the criteria. Over 90% of those that try and claim it do not, so the irs flags a very high percentage of those that do for an audit.