Another question we often get asked is – What expenses can I deduct?
This subject could cover a lot of territory so we’ll do a series of quick blogs to cover the more common items.
As a general rule a business can claim and deduct any expenses incurred to run the business.
But, there are a few that might not be obvious:
Home Office Expense:
If you operate your business from your residence and have space in your residence that you use only for your business then you may be able to claim part of your utilities, insurance, property taxes, normal maintenance and mortgage interest or rent.
What you can claim has to be reasonable which usually means claiming a portion of these expenses based on square footage. For example, if you use a room in your residence for an office (say its 10 X 12 or 120 Sq ft) and you whole house is 1,500 sq ft then you can claim 8% of the utilities, etc as rent in your business.
Give us a call and we’ll help you work out the exact amounts for your situation.