4 ms·

I'm not sure about the US but here in New Zealand, even if you just work in a room in your usual home, you can claim that percent of your home's costs in your b

by Nition 10y ago

I'm not sure about the US but here in New Zealand, even if you just work in a room in your usual home, you can claim that percent of your home's costs in your business expenses.[1] So I definitely wouldn't say you're doing anything immoral tax-wise. [1] http://www.ird.govt.nz/business-income-tax/expenses/homebus-exp/bit-expenses-homebusinessexp.html http://www.ird.govt.nz/business-income-tax/expenses/homebus-...

velodrome 10y ago
Yes, the US has the home business deduction. https://www.irs.gov/publications/p587/index.html https://www.irs.gov/publications/p587/index.html
- BatFastard 10y ago
  But most accountants suggest you don't take that deduction since they tend to be audited at a much higher rate.
  - Tushon 10y ago
    I'm gonna call a hard citation please on "most accountants don't recommend" you taking a deduction that could get you a boatload of reduced tax liability.
    - fnayr 10y ago
      Well I definitely got that recommendation too. His exact advice was that I shouldn't take it unless the office was it's own sealed off room that was NEVER used for ANY other purpose. He certainly scared me out of taking the deduction.
      - dfcab 10y ago
        Agree, was told same. The requirements are strict and just not worth the hassle. Hope laws can be updated as working from home is more commonplace nowadays.
      - pault 10y ago
        That's funny because turbotax always suggests this.
  - charlesdm 10y ago
    If you're scared about an audit, you shouldn't be in business.
    - jsmthrowaway 10y ago
      Fear isn't the only reason to avoid one. They're also quite inconvenient.
    - blackguardx 10y ago
      I think many people use their home offices for other stuff than just work. Maybe it's a spare bedroom for guests or maybe they sometimes place computer games in it. If you get audited, you will have to explain all this. It won't be fun and if the audit doesn't go your way, you are looking at legal trouble.
  - icedchai 10y ago
    I've been taking it for 15 years. I've never had a problem.
mstade 10y ago
Yeah it's the same here in Sweden but its much less hassle audit wise to just show a separate unit with the company name on the door than a single room. Or at least, that's what my accountant told me, and the grapevine seemed to agree at the time I looked this up.
koonsolo 10y ago
Same here in Belgium

by Nition 10y ago

velodrome 10y ago

Yes, the US has the home business deduction. https://www.irs.gov/publications/p587/index.html https://www.irs.gov/publications/p587/index.html

BatFastard 10y ago
But most accountants suggest you don't take that deduction since they tend to be audited at a much higher rate.
- Tushon 10y ago
  I'm gonna call a hard citation please on "most accountants don't recommend" you taking a deduction that could get you a boatload of reduced tax liability.
  - fnayr 10y ago
    Well I definitely got that recommendation too. His exact advice was that I shouldn't take it unless the office was it's own sealed off room that was NEVER used for ANY other purpose. He certainly scared me out of taking the deduction.
    - dfcab 10y ago
      Agree, was told same. The requirements are strict and just not worth the hassle. Hope laws can be updated as working from home is more commonplace nowadays.
    - pault 10y ago
      That's funny because turbotax always suggests this.
- charlesdm 10y ago
  If you're scared about an audit, you shouldn't be in business.
  - jsmthrowaway 10y ago
    Fear isn't the only reason to avoid one. They're also quite inconvenient.
  - blackguardx 10y ago
    I think many people use their home offices for other stuff than just work. Maybe it's a spare bedroom for guests or maybe they sometimes place computer games in it. If you get audited, you will have to explain all this. It won't be fun and if the audit doesn't go your way, you are looking at legal trouble.
- icedchai 10y ago
  I've been taking it for 15 years. I've never had a problem.

mstade 10y ago

Yeah it's the same here in Sweden but its much less hassle audit wise to just show a separate unit with the company name on the door than a single room. Or at least, that's what my accountant told me, and the grapevine seemed to agree at the time I looked this up.

koonsolo 10y ago

Same here in Belgium