Working from Home?
Maximize Your Home Office Tax Deduction
If you use part of your home exclusively and regularly for your business, you likely qualify for the home office deduction.
This valuable write-off is often overlooked by small business owners.
There are two ways to calculate the deduction:
Simplified Method:
$5 per sq ft up to 300 sq ft, for max $1500 deduction. Easy but small.
Actual Expense Method:
Calculate business use % of home and deduct that portion of mortgage interest, taxes, utilities, etc.
More paperwork but bigger deduction.
BHA helps clients use the Actual Expense method to maximize tax savings.
We determine your tax home and business use percentage, then build a reimbursement plan through an Accountable Plan.
This allows deducting home office costs on the business return, not personal return.
Potential reimbursements:
- Mortgage interest/rent
- Utilities
- Repairs
- Internet
- Cell phone
- Mileage
Home office deductions can add up, especially for high-cost areas.
But you need to follow the rules.
BHA has a digital intake form to collect home office data and advise on maximizing this often overlooked deduction.
Contact us to analyze your situation and potentially unlock big tax savings!