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Tax Tip of the Day: Home Office Deduction! Take advantage of the Home Office Deduction if you work from home. You can deduct a portion of your rent, utilities, and other home-related expenses if you use a specific area exclusively and regularly for business purposes. The simplified option lets you deduct $5 per square foot, up to 300 square feet (maximum $1,500). Alternatively, the actual expense method may yield a larger deduction but requires more record-keeping. Remember, this deduction is available only if you're self-employed, a freelancer, or an independent contractor.

One of the most valuable deductions freelancers can take advantage of is the home office deduction. If you're self-employed and use part of your home exclusively for business, you may be eligible for this write-off. Here's everything you need to know to maximize your savings. https://lnkd.in/dEFYCEdR #freelancersTips #FreelancersFinance #WorkFromHome #WFH

If you are a freelancer or work remotely, you have the opportunity to claim a tax deduction for expenses related to your home office. Self-employed individuals meeting IRS criteria can benefit from the home office deduction, while traditional employees working from home do not qualify. Ensure you understand the specific requirements to make the most of tax benefits related to your home office setup. #TaxDeduction #RemoteWorkBenefits

How to claim a Big Home Office Deduction We saw 14 different expenses which can be claimed in the previous blog today. So how do we claim the expenses and how do we calculate the claim? Many businesses start from home , on the dining table and even when they take on office space they continue working part time from home ( weekends and evenings) Working from home means, you can claim part of your home expenses. But who can claim, how much and what expenses can be claimed? Most business owners take home work and use phone to make calls for business purposes, so they are entitled to claim these costs against their income to reduce their tax ( called use of home as office expense claim) Amazingly many Tax payers do not claim the Expense, because of faulty thinking. even if you have 2 Homes , you can claim expenses for the use of both. How Much Can You Claim? Usually it is a proportion of the Expense incurred. The basis is often Time or space. Time is the Days you work from home Example You have 3 bedrooms and 2 living rooms. Your Household expenses are £20,000 You use 1 room so you can claim 1/5 * 20,000 = 4,000 The Tax saved on £4,000 at 42% = £1,680 SAVED Do you want to SAVE TAX plus get your Tax completed. We charge £25 a Month so you can E mail us any time, you need Advise

When freelancers start, many wonder if they need an LLC to deduct home office expenses. That’s not true! You don’t need a formal legal entity to deduct business expenses. As a sole proprietor, your business expenses are just as legitimate as those of any corporation, as long as they are necessary and ordinary. The key is that the expenses are incurred in the course of operating your business and attempting to generate revenue. For instance, if your freelance business is making $20,000 a year, it’s reasonable to deduct a portion of your home office expenses. However, if your business is considered a hobby, such as occasional blogging with consistent losses, those losses might not be deductible. Share this with someone starting their freelance journey so they know they can still deduct their home office expenses! 😎 #FreelancerTips #HomeOffice #SmallBusiness #TaxDeduction #SoleProprietor #BusinessExpenses #EntrepreneurLife

Turn your coworking space into a tax advantage and potentially supercharge your refund! Did you know your Servcorp coworking membership could lead to significant savings this tax season? Get the details in the link below.

The Home Office Deduction for business owners is a widely misunderstood part of the tax code. I've been a CPA for over a decade and it took until a few months ago for me to change my opinion on the home office deduction for small business owners. And I still get push-back from others in the profession about it. Here is one hugely misunderstood piece: Even if you rent or own an office space for your business outside of your home, you may still be entitled to take a home office deduction if you perform administrative or management duties from a dedicated space in your home. This also potentially opens the door for additional mileage deductions. Every person's fact pattern differs slightly but if this sounds like you and you've been told you can't take a home office deduction because you lease an office space, there is a chance you are leaving money on the table.

Home office expenditure deductions: If you’re an employee, earn commission income, or operate as a sole proprietor from your home, and you’ve allocated a space specifically for business purposes, you may qualify to deduct certain expenses related to maintaining your home office. This deduction is calculated proportionately, provided you meet the criteria outlined in the Income Tax Act, specifically in sections 11(a), 23(b), and 23(m). To claim home office expenses, you must ensure that: 1. The designated room is used solely and regularly for your trade, such as employment, and is equipped accordingly. 2. If you’re salaried, the majority of your work duties are performed in this space, constituting over 50% of your total responsibilities. 3. Alternatively, if your income is largely based on commissions or variable payments, and over 50% of these duties must be carried out outside of an employer-provided office. Qualifying home office expenses typically include rent, repairs, and associated costs like rates, taxes, cleaning, and electricity. Additionally, items used for business purposes within the office, such as equipment, furniture, phones, internet, and stationery, may also be considered. To calculate the deductible amount, the following formula is used: (A / B) x total costs, where: • A represents the area in square meters specifically designated and exclusively used for business purposes (i.e., the qualifying home office). • B represents the total area in square meters of the entire residence, including any outbuildings and the portion used for business. • Total costs encompass expenses closely tied to the premises, excluding capital expenses. The home office deduction is a great way to decrease your taxable income, however the supporting documents need to be in line with the SARS requirements, if they are not, the expenses and Deductions will be disallowed. #sars #deductions #refund #stratfinn #taxseason #homeoffice #expenditure

Are you considering the financial benefits of working from home beyond the commute savings? Transitioning from a rented office to a home setup has not just convenience but also tangible financial upsides, especially when it comes to managing overheads. However, understanding what can be legitimately claimed as a home office expense when filing taxes can be confusing. Here's a simple breakdown: If you're using a portion of your home solely as an office, it's plausible to proportionally deduct expenses like heating, Wi-Fi, and even rent based on the square footage used. But here's the catch - this area must be dedicated strictly for work. For instance, if a room doubles as an office and a playroom, only a fraction of the expenses linked to the actual office use can be considered. This practical approach is not just about claiming what's fair, it’s about maximising your tax benefits legally and effectively. It’s imperative to be meticulous with calculations to avoid any conflicts with tax regulations. Are you making the most out of your home office deductions? What challenges have you faced in segregating and calculating these expenses? #HomeOffice #TaxDeductions #RemoteWork #FinancialManagement #WorkFromHome