7. Home-Office Expense Deduction
Self-employed and also working from home? Then, you might be entitled to deduct home-office expenses. All renters and homeowners can deduct this type of expenses. The best part? The taxman ignores the type of house you have. So, if your home is actually a boat, it doesn’t matter.
The deduction also applies if you’re actually working from a barn, unattached garage, or a greenhouse. As long as your house is actually used to make some income, you can deduct almost all home-office expenses.
From utility bills, general repairs, insurance costs, and other expenses related to home-office, all of them can be deductible. If you want to calculate home-office expense deduction, there are actually two methods. The first one refers to multiplying the home expenses by the percentage of your home that’s dedicated to your business.
The second method is basically deducting $5 for every square foot used in your home for business purposes. The last method is easier to implement and keeping records of it.
