Commentary, news and
reflections about
this taxing life, by Vernon Jacobs, CPA.
this taxing life, by Vernon Jacobs, CPA.
Jacobs is the co-author of Legal Ways to Save Taxes Offshore & Onshore, of Offshore Tax Strategies, of The Controlled Foreign Corporation Tax Guide and of Risk Management for Amateur Investors. He is the Editor & Publisher of the International Wealth Protection Monitor newsletter and the free Q&A service, the Jacobs Report on International Financial Planning. He is the President of Offshore Press, Inc. and is a member of the International Tax Technical Resource Panel of the American Institute of CPAs. He has been a CPA since 1962, with a focus on taxes since 1975. .
Deducting an Office at Home
You don't have to own a home in order to deduct whatever part of is used for a trade or business. And the real benefit is not limited to deducting a percentage of your rent or depreciation on a home. You also get to deduct a portion of all the costs associated with your residence. That would include utilities, maintenance, insurance, etc.
The key to the office at home deduction is that you must use a portion of the home exclusively for business purposes. In addition, the home office must be your principal place of business. It isn't necessary that your business be a full time business and it's not essential that you make a profit from the business every year. While your home office deduction is limited each year to the amount of your taxable income from the business, any excess deduction can be carried forward to a future tax year.
by Vernon Jacobs, CPA
Co-author of Legal Ways to Save Taxes Offshore & Onshore
http://www.offshorepress.com/legalways2save.htm
| Contact Information: Email jacobs1@kc.rr.com. Phone
913-362-9667, Fax 913-432-7174, U.S. mail to POB 8194, Prairie Village,
Kansas, 66208. www.vernonjacobs.com |
Jacobs is the co-author of Legal Ways to Save Taxes Offshore & Onshore, with J. Richard Duke, JD, LLM.
