Thanks to technology, your office can be anywhere and everywhere. Even your very own lawyer in Tampa could be working from home. Many people take advantage of this and actually start small businesses from their home. Having a home office does come with its own legal and practical implications. Check in with your lawyer in Tampa to make sure you get the most out of your home office.
Take a look at these tax tips to make sure your small business benefits from a home-office deduction. Still have questions at the end? Speak with your local Tampa lawyer and see what they can do for you!
- Insurance: Your homeowner’s insurance may not cover the liability of having a home office. Check to see what additional insurance you may need to protect your home and business.
- Zoning laws: Operating out of your home doesn’t mean you can ignore local zoning laws. Depending on your business, certain restrictions could apply to you. This can include anything from parking to hours of operation. Check the zoning laws beforehand.
- Home-office deduction: To use the home-office deduction, you must have an actual home office and not a place where you sometimes work from. The work space must be clearly separate from a personal living space.
- Deduction precision: Try to be as precise as possible. Try to avoid round numbers because it could raise questions from the IRS.
- Prorate expenses: When mixing business and personal use, divide the total costs. For example, if you use your internet 60% for business, then you can deduct 60% off.
- Additional Taxes: An office is still an office. Some towns may charge you additional taxes. It’s important to make sure your expenses can be proven and are appropriate.
Working from home has a lot of advantages and disadvantages. It’s key to keep your personal living space and work space separate. Make sure to consult with a professional on the tax benefits of a home office and if it’s the right fit for your business.