I upgraded my internet connection to fiber optic. Can I deduct my self employed and work-from-home portion of the update fees?

[JulieH1 · Accepted solution]

Yes.

You just need to proportion the overall cost to the proportion that you use the home office.  If you use the fiber optic only in your business then you can deduct 100%.  If you use it for personal as well then you need to figure out how much of the time you use it for business and be able to back it up.  If you are not sure since it is internet and not actual space, you could play it safe and use the proportion formula that you use for your home.

For example, you have a 1000 sq ft home.  Your home office is 100 sq ft which equal 1/10 of the home area.  The portion of your home that you use for your office is 10%, so you can deduct 10% of your rent, taxes, utilities, etc.