4 ms·
Only slightly related, but something I've always wondered.. can a residential house the founders live in, and employees work in, be claimed as a legitimate busi
by petercooper 12y ago
Only slightly related, but something I've always wondered.. can a residential house the founders live in, and employees work in, be claimed as a legitimate business expense? I see this quite a lot in the US. I looked into it here in the UK and it doesn't work out particularly well tax-wise.
- pimlottc 12y agoIANAL but my boss lives upstairs in the same house we work in. What he does is that he rents out the office from himself as an individual to his business. But that's just for the main floor, it doesn't include his personal living area. I certainly can't speak to how things work in the UK but as long as you kept the business and personal accounts separate and charged a reasonable rate I don't think they'd be any particular problems.
- SomeCallMeTim 12y agoThe rough answer (I'm not an expert) is that you can deduct costs for a room used 100% for business. Put a TV in it and you're at risk of it being considered personal space. I think it's possible to deduct a space as some fraction of the time used for work, but there may be a minimum threshold? I know it can work at 100%, but it's hard to prove 100% business usage -- and I've also heard that it's a tax audit trigger (as in, it raises your chance of being audited).