Forum Discussion
- julieJobber Community Team
Got another question for ya!
What can I claim on my taxes as home office expenses?
I don't have a separate room for an office so I use a space in my living room when working at home. Would this also make a difference?- Robert_GauvreauContributor 3
Hey Julie. In essence, any non-capital expenses related to your home can be pooled together, and a portion of those pooled expenses can be deducted as a home office expense. For example, if your house was 2,000 square feet and your home office was 200 square feet, you could claim 10% of the total pooled home expenses. Examples of eligible expenses are: mortgage interest, property taxes, rent, utilities, repairs and maintenance, insurance, etc.
- CleanNClearContributor 2
Hi Robert, my two children are interested in trying their hand at helping me with my cleaning biz. How does paying my kids as employees help maximize my business deductions?
- Robert_GauvreauContributor 3
Hey CleanNClear. Paying your kids is a full business deduction. Depending on the income your children are earning, they may or may not have to pay tax on that income. For example, if they are earning income of less than $15,000 annually, they will pay no tax on that income. You will get a deduction, saving you tax, and they will claim the income, which won't pay them tax. You will most likely have a tax benefit as long as the income each child is reporting is less than yours.
- MikeinbusinessNew Member
Yes good stuff
Related Content
- 2 months ago
- 2 months ago