Small Business deduction.

Asta · ‎June 10, 2023

I recently opened a donut shop and purchased a table for $300 and store it at my room. I will use table on document process related on the donut business. Can I claim that on my tax return?

Critter-3 · ‎June 11, 2023

Do you mean you have an office in your home and you bought a table to work on company business? If you have a place of business where this work could be performed then you cannot also deduct an office in the home which is for your convience only.

Asta · ‎June 12, 2023

No, I do not have an office but I purposely buy table to work on business doc related. Also, since I don't have an office, can I still claim printer, computer, monitors and etc...?

Thank you for taking the time to answer my question 🙂

Critter-3 · ‎June 13, 2023

If you have a donut shop ... a brick and mortar store ... then you cannot claim any home office expenses of any kind since you have a place of business. You don't make/sell the donuts from your home... it is not the place of business. Your choice to set up a space to work from home for your convenience is a non deductible personal expense.

You can take the office in home expenses if you meet the "regularly" and "exclusively" tests.

To deduct expenses related to the business use of part of your home, you must meet specific requirements. Even then, your deduction may be limited.

General Rules

To qualify to claim expenses for business use of your home, you must meet the following tests.

1. Your use of the business part of your home must be:
------a. Exclusive (see below),
------b. Regular,
------c. For your trade or business, AND

2. The business part of your home must be one of the following:
------a. Your principal place of business
------b. A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or
------c. A separate structure (not attached to your home) you use in connection with your trade or business.