Re: Tax Deductions for Small Home Business


"Todd" <tfeller@xxxxxxxxxxxxxxx> wrote
> So if I buy a new desk and PC this year but do not show profits until
> next then I cannot take the home office deduction?


All "ordinary and necessary" expenses of your business are deductible, and
this includes depreciation on furniture, fixtures and equipment.

If you have a legitimate home office (a definitive space that you use on a
regular and exclusive basis for business), the "home office" expenses of a
portion of your home utilities, rent/mortgage interest, taxes, insurance,
etc are allowed to be deducted, but only to the extent that you have
business profits from that activity. Any unused "home office" expenses get
carried forward to be used in a future year when you do have profits.

It seems that you should consult with a local tax professional who can lay
out what expenses you should be accumulating to use in preparing your
business and personal tax returns this year.



--
Paul A. Thomas, CPA
Athens, Georgia
paulthomascpapc@xxxxxxxxxxxxx


.

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