Self employed write off

[DML Talent Solutions]

I have a sole proprietor LLC and work out of my home. What am I able to write off as business expenses? 

[KimberW]

You may qualify to deduct a portion of your home office expenses if you have a space that meets the requirements:

• regular and exclusive use of the space for your business -- this means that there is no deduction available for working at the kitchen table, but turning a spare bedroom into a home office could qualify
• principal place of business -- this means that your space is the main place where you conduct your business or where you regularly meet with clients and customers

There is a simplified method to deduct $5 per square foot of your business space (up to a maximum of 300 square feet). Or, you can deduct a percentage of your "whole home" expenses based on the percentage of your "whole home" that your business space takes up.

We have excellent posts with more details about the requirements to qualify and how to calculate the deduction for business use of home.

The Home Office Deduction 

Working at Home 

Setting Up a Home Office 

Thank you for participating in this event!

-- KimberW

[Mark_5]

You can deduct most all expenses that are related to the business to pay fewer taxes.  There needs to be a connection between the business with its operation and the expense.  Some expenses are subject to additional requirements, limitations and documentations; business meals-normally 50%, home office- dedicated space in the home, auto-use documentation.  Documentation and records should be kept to verify the numbers.

Common tax-deductible business expenses 

Business use of your home 

Business use of car 

Related Information:

What self-employed expenses can I deduct? 

What types of meal and entertainment expenses are 100% deductible on a business return 

Where do I enter my self-employment business expenses, like home office, vehicle mileage, and suppli... 

What kinds of rental property expenses can I deduct? 

Can employees deduct any job-related expenses?