5 Tax Deductions for Your Home-Office You May Not Have Thought About

Tax time is fast approaching – a time when every small business owner begins scrambling to come up with every possible deduction available to them. At Synclio, we feel your pain and we understand that every penny counts. We’re all about supporting those businesses that are run out of home offices. We’d like to help you out by highlighting five potential tax deductions for small businesses that might just help you out a little. You can thank us later.

A Portion of Your Property Related Expenses – Did you realize that you can claim whatever percentage of your home that you use for your business as a deduction on your taxes? For instance, if you use 25% of your home’s square footage for your office, you are allowed to claim that same percentage of such expenses as your rent, mortgage interest, insurance premiums, and tax-deductible property taxes, as well as utility bills including electric and gas.

Repairs and Improvements to Your Workspace- If you made any upgrades, improvements or repairs to your home office, you’re allowed to deduct them on your taxes. Anything from new paint to refinished floors may be tax-deductible. (Keep in mind, however, that some larger improvements may be subject to asset depreciation.)

Furniture and Décor – You probably already know you can claim your electronic equipment purchases, but did you know you can also deduct the cost of your furniture and décor, such as your desk, chair and artwork? Just be certain to keep anything you deduct in your office, in case of an audit.

Home Related Expenses – In addition to your mortgage or rent, the other expenses you incur, such as trash removal, roof repair and snow removal, are also tax-deductible based on the percentage of square footage you use for your business.

Your Business Phone – If you maintain a separate phone line for your business phone system, you can claim that line as a deduction. If you don’t have a separate line, you can itemize your business related calls. Not surprisingly, this is our favorite deduction.

On a side note (a very important side note), be very careful when itemizing and claiming a lot of business deductions. While the ones listed here are potentially available to you, it’s always recommended that you consult with a professional accountant or tax adviser to be sure.

Labels: prepare for tax season, small business, taxes