Home based business

2 Replies

Do I understand correctly that one can deduct that portion of your home's property taxes as a business expense that is used for your business?

If so, is that based on the square footage used to support the business? In other words as a percentage of the whole?

Thank you.

Yes @Digger Odell if you have a home office that you use to run your business you can deduct the proportionate expenses. As an example, if your house is 2000 SF and your home office is 500 SF you can deduct as a business expense 25% of property taxes, insurance, electricity, heat, etc... The IRS does say that your home office must be used solely for that purpose. It cant be a spare bedroom with a computer in it. It also cant be a room your kids use to play games on your computer. 

Originally posted by @Digger Odell :

Do I understand correctly that one can deduct that portion of your home's property taxes as a business expense that is used for your business?

If so, is that based on the square footage used to support the business? In other words as a percentage of the whole?

Thank you.

 To add onto the other example there is also a "Safe Harbor" of $50 per square foot that you can deduct too; however, much of this depends upon your business to determine if it is allowed or not.