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mgalinat
New Member

Can I deduct Electricity bills for self employment

I work solely from my computer and cell for a Le-vel business selling health products.
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1 Reply
NicoleU
New Member

Can I deduct Electricity bills for self employment

Yes, if you have a separate office or other business that's not your home or part of your Home Office deduction, if you qualify.

If you had a separate office or other business property that's not your home, then you would do the following:

  • Go Business
  • How do you want to enter your business income? Select I'll choose what I work on
  • Business Income and Expenses, Click Update or Start
  • Business Expenses, Other Common Expenses, click Update or Start
  • Utilities, Click Update or Start

For the Home Office deduction, please see the following:

In order to take a deduction for your home office, you must use it exclusively and regularly in any of the following situations:

 - As the principal place of business for your trade or business (your home office will qualify as your principal place of business if you use it to conduct administrative or management activities of your trade or business, and you have no other fixed location where you conduct substantial administrative or management activities)

 - As a place to meet or deal with patients, clients, or customers

 - In connection with your trade or business if you are using a separate structure not attached to your house or residence

Exclusively means that you use the room or area for business purposes only; regularly means that you use your office on a continual, regular basis.

There are two exceptions to the exclusive use requirement:

1. You use part of your home to store inventory or product samples and all the following are true:

 - You keep them for use in your trade or business

 - Your business is the wholesale or retail selling of products

 - Your home is the only fixed location of your business

 - You use the storage space on a regular basis, and the space is an identifiable one and suitable for storage

To enter the Home office deduction: https://ttlc.intuit.com/replies/4773249








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