Re: Electricty, home office and tax return

On Feb 26, 4:28 pm, "Paul Thomas, CPA" <paulthomascp...@xxxxxxxxxxxxx>
wrote:
"Konstantin Solomon" <KonstantinSolo...@xxxxxxxxxxxxxx> wrote

How do you calculate your electrity that you can deduct, if you have
your office at home?

It's a standard formula. Square footage of your office space that qualifies
as a percentage of the whole house.

Example, 120 sf office space -v- 1200 sf house space = 10%

I am using most electrity to do my job but I also heat
up some junk food and watch the late night news,
which is considered private, I believe.

My electrity bill is in average $ 20 a month, how can I deduct it?

You're kidding - right.

*** No, I am not kidding, Paul. I am a frugal guy. Not greedy - but
frugal. :)

In that case, you can take 10% of the power bill - or $2 a month, or $24 a
year if you used the home office all year.

*** My fridge uses probably 5 bucks a month, rest is mainly lights,
computer, little heater, air condition. (I try to use it rarely to
save.) I rather sweat than paying high bills because when I see high
bills, I sweat too.

Anyway, according to my own calculations, I use half of the amount on
the job and half for business. In other words, I use 10 bucks
electricity per month not just 2 bucks.

You think that 10 $ electricity for a home office per month is
excessive? I mainly work around the clock. I had not much private life
last year, besides the 10 o'clock news for an half an hour per day.
And I sometimes missed even those in order to meet a due date for a
customer.

Konstantin



--
Paul Thomas, CPA
paulthomascp...@xxxxxxxxxxxxx


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