Home: Message List - Question about Business Expenses

Re: Question about Business Expenses

OrenjiDesigns — Sat, 22 Nov 2008 02:26:34 GMT

Thank you very much for your help, Elite. It was very helpful in finding the answer to my question. I will look into Form 8829. Thanks very much!

Re: Question about Business Expenses

Elite1 — Sat, 22 Nov 2008 02:01:24 GMT

Only the area used for business is deductible. In order to figure out how much is deductible you need to know the square footage of your entire rental space and the square footage of the "business only" area. You can use this to calculate the percentage of your rent that is deductible. Business Area divided by Total Area. IRS Form 8829 will provide you with the information you need for this.

As far as the clothing goes, someone else has already answered that. The only clothing deductible is that which is necessary for your profession and isn't attire you would normally wear somewear else, i.e. a uniform.

Tanya
Elite Financial Services, LLC

Re: Question about Business Expenses

intechspecial — Thu, 30 Oct 2008 21:25:11 GMT

Emabley-

What seems to be the problem?

Are you ok?

Re: Question about Business Expenses

OrenjiDesigns — Thu, 30 Oct 2008 07:57:20 GMT

oops! I just noticed you put both those responses, lol. I apologize for that! Thank you intech for all your help I'll look into right away.

Re: Question about Business Expenses

OrenjiDesigns — Thu, 30 Oct 2008 07:56:21 GMT

You're absolutely right. I think I'm going to see if I can ask an accountant and call the number intech mentioned. Thank you all for your answers! They've been very helpful

Re: Question about Business Expenses

intechspecial — Thu, 30 Oct 2008 06:03:06 GMT

It is always best to err on the side of caution when it comes to taxes and the IRS, if you are not sure you had best contact the IRS or find a good accountant.

Re: Question about Business Expenses

intechspecial — Thu, 30 Oct 2008 06:01:49 GMT

I would have to agree that this IRS publication is of good use for your question. Lighthouse does not usually steer people wrong.

I must also mention that the IRS has a toll free number specifiically to anwer small business tax questions.

The number is listed on the www.irs.gov website.

Re: Question about Business Expenses

OrenjiDesigns — Thu, 30 Oct 2008 04:25:18 GMT

If anyone has anymore insight to this, I'd also greatly appreciate it. Thank you.

Re: Question about Business Expenses

OrenjiDesigns — Thu, 30 Oct 2008 04:23:34 GMT

That definitely answered my question. Thank you very much, Light!

Re: Question about Business Expenses

Lighthouse24 — Thu, 30 Oct 2008 04:02:01 GMT

I'm not an accountant, but in general, you can only take the home office deduction for space that is used exclusively for business purposes (and nothing else). See IRS Pub. 587 for guidelines.

http://www.irs.gov/pub/irs-pdf/p587.pdf

You can only take a deduction for work-related clothing if your work requires something that would not be suitable for "ordinary wear." The IRS has broad discretion there (they disallow airline pilots to deduct their uniforms, so I'm guessing that it has to be something like a haz-mat suit to allowable).

Hope that helps. Welcome to the community and best wishes.