business deductions

[strusta1]

I take care of clients' dogs in my home while they go away. I do not crate, but use 67% of my home where the dogs have full access. Can I deduct 67% of my utilities as a business expense?

[Critter]

Complete the OFFICE IN HOME section in the Sch C expenses section  and the program will do all the proration of the annual expenses for you. 

[strusta1]

The space used is for the dogs and myself. That doesn't qualify as a home office, does it?

[Critter]

Your situation is like a daycare for kids ... follow the interview screens ...

If you are new to being self employed, are not incorporated or in a partnership  and  are acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

[AmeliesUncle]

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@Critter wrote:

Your situation is like a daycare for kids ... follow the interview screens ...

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No, the Home Office rules for daycare only apply to watching "children".

So only space that is EXCLUSIVELY used for business can count as a Home Office deduction.  If you use the space when not doing the business, that space does not qualify for the Home Office deduction.