Super Happy I found this Channel1!! You literally explained it with grace and in simple terms! I appreciate you. My anxiety level went from 100% to 1%! Yay! Thank you, thank you!
Your example of calculating the home office deduction according to the square footage percentage was confusing.This one and previous videos stated for homeowners: only certain components of the mortgage payment can be deducted (mortgage interest, property tax (included or outside of mortgage payments), etc. --the entire mortgage payment can not be deducted. I understand that monthly rent payments can, but you gave the example of monthly rent/mortgage payments which I believe is incorrect. Although, I think it was a mistake/oversight, this is misleading. Could you please make that correction on this video if it is applicable? If I am mistaken, I apologize! Thanks!
This will be my 1st year claiming the Home office deduction. My question is how do I actually get it applied to my annual tax filing? Is there a certain form to fill out and take to my filing appointment or can I just verbally walk through it with the tax representative? Thanks.
Isn’t it on the simple a maximum of 300 ft.² times five dollars is $1500 per month that the Business has been using the Square feet henceforth that would be $18,000 at the end of the year that could be written off on the simple method
What if you are a virtual employee not self employed but you are buying office furniture, fixing broken office window. Are those depreciated assets? Where can we enter those?
I'm a full-time w-2 employee and I just opened LLC which is not related to my w-2 job. I have a designated area in my apartment and it's being used exclusively for the administrative and all other business purposes of my LLC. Can this home office qualify for tax deduction?
Don’t we already write off mortgage interest? How would that reconcile with this? Are all insurances and expenses on the home part of the deduction calculation?
Where do you write off job searches? I am confused because I don't see one person on UA-cam selling advice on doing a 2106 related to job searches in the same field .
Sorry, to clarify, your entire mortgage payment is deductible by the percentage of your home office space? In the beginning of the video it says mortgage interest, so is it the entire mortgage payment or just mortgage interest?
If you have a home office but then sell your home after living in after 2 years, does the home office deduction affect the capital gains tax deduction?
You made an example of a 3000sqft home (living built area I assume)...What what if the whole lot is $8000 sqft and I use alll the back yard for business purposes? ...What if I DONT use the open space or back yard to work, then the calculation wouldn't be based on 3000 sqft but 8000 sqft and the deduction would be a lot less in your example?....In conclusion does IRS consider the whole lot or just the built area?
I can still take the deduction if I started my business in November, right? Instead of a year's worth of expenses, I'm thinking I'd just count the expenses for those 2 months? Please confirm whether this is ok. Thanks!
If I just entered the whole amount of rent, which is $1,200 per month plus give the square footage of a room, will the tax preparer do all those other calculations for me
7:09 You said "rent or mortgage payments" can be deducted. I am looking at the instructions for form 8829, and I dont see that mortgage payment can be deducted? Can you show me where they can or was that a mistake in the video?
Good explanation. But that calculation is wrong though at 7:54. 30,000.00x33 gives you 990,000.00. Did you mean 33% of 30000? You should clarify. Thanks.
Man, your videos and your information is awesome and appreciated. Can you explain this scenario for S-Corp? If you take a deduction of 18K/Year under a corporation, but on personal tax return it's 18K in rental income, so how is this really a tax write-off/deduction? Because it seems to me that at the end, S-Corp does NOT pay taxes, but the K1 personal statement pays for it. Is there a way to get by this? THANKS in advance.
If W2 income and started LLC. will I be able to deduct home office expenses for a business that makes $0, meaning it will eventually deduct the taxable income from W2 income as there was no income from LLC?
In addition to the mortgage insurance, HOA, utilities, etc, would the office improvements like ceiling fan installation and flooring be a deductible expense?
Great video! Thanks, your content is helping me a lot. The working in your garage and making products in your home kitchen examples actually wouldn’t qualify though right b/c they’re not exclusive to the business (assuming you use your garage for parking a car and a kitchen for cooking food)? Thx again!
For the home office deduction, I can't find anywhere talking about if you can still qualify for the home office deduction if you either live with relatives (but really work from home), or if it matters if you are really paying rent to those same relatives? Can you claim this home office deduction if you aren't really paying rent (but are really working from home.)
I have a question, and I apologize for my ignorance. If I have a full time job and a side business (home workshop), would I be considered a qualifying tax payer?
Hey quick question. So I’m filing my taxes through turbo tax and if I use the same office space for 3 separate businesses, do I claim the entire office space for one business, divide that space into the three businesses or can I claim that entire office space for all three businesses? Thanks in advance!
Thanks a lot for the well thought out vids. My question is, how do you determine when should try to utilize this deduction?? I am a new Homeowner and have allotted my whole lower half for my studio. I’ve bought some expensive equipment as well and I’m trying to find out if it would be worth me filing as a sole prop? I’ve made no income, just money going out. It would be great to get a little back for what I’ve spent but I can’t get any CPA’s to answer these basic questions where I’m at!!?
You could've purchased all that gear under an LLC and you wouldve gotten a tax break. Did you do that with your regular taxes? Create an LLC anyway and if you keep buying gear, use your business card to pay it.
@@NanoverseProductions thanks for your reply. Learned a lot since I posted this and have secured my LLC as well as a business card. 💫 Next feat is going to be filing taxes for the purchases I’ve made. I’m hoping to get something back off of these expenses and not end up owing!
If we have a home office and we also rent out a portion of our single family home, then can we deduct the 7 deductions (video: 2.48) in proportion , for both these separately from our income? Pls advise?
In the example you gave at the end of the video, you deducted part of the mortgage and not just the mortgage interest. Ij other parts of the video however you specified that mortgage interest cam be deducted (not principal itself).Is that correct and is it allowable? Thank yoi
Great video! What about if you have multiple jobs - one that you’re considered an employee and get a W-2 and another job that you user your home office for? Does this make someone qualify or can you not be an “employee” at all, anywhere, and must be full time business a owner/independent contractor?
@@LYFEAccounting sorry maybe I didn't explain myself correctly. I guess I was wondering if I am disqualified because I have another job that considers me an employee? I'd only look to seek this deduction for my contract job
I am not an accountant, but for the bit that I know, it is irrelevant whether you have a regular job as an employee. The only matter that counts is the portion of your home that is exclusively used for your business.
I am no expert but I will say i am an employee at a Regular job, (wage earner) and i ALSO opened a home based business in my home, an LLC and not made a single profit but i was able to deduct my start costs for my home business therefore offsetting my taxes i wouldve paid on my Regular-employee job !! I will add that i knew this is possible bc i used TurboTax and it allowed me to do just that..
I'm confused when you said employee with w2 cannot deduct home office expenses. I work a regular job and receive w2. I also thinking about getting a sole proprietorship business register. Can I not claim my home office deduction? I thought if you have a sole proprietorship you claim taxes with your personal income taxes. Which will be my w2.
You can't claim the home office deduction unless you have a business that works in a part of your home regularly and exclusively. Simply having a sole proprietorship with no actual business does not qualify. Do you plan to start a side business or change to a 1099 contractor?
Question- can you write off the entire mortgage note if you have a house cleaning business and you use your personal house as a model house for your business to show potential clients the quality of your work?
The mortgage interest, the taxes you paid, water bill, electricity, internet, construction work done in house, the heating boiler you changed, the electricity wire changed
Every day I work out of the clubhouse/business center (use the computers/printers and coffee lol) of my apartment complex. I pay rent. Can I use the square footage of the clubhouse to determine my deduction? My clients even come in and meet with me in the conference rooms. I also take professional pictures in the clubhouse for my social media. Surely this can be deducted in some way?
So I have a question on the home office deduction. My business room is 144sq feet and my total house square feet is 1432 so about 10%. My mortgage which includes taxes and insurance is around 1500$/month. Would it benefit me to do the simplified method in which I would get 720$, or the 10% which is about 150$ but can either of them be able to include deduction the water and electric at 10% as well then? Thank you
It’s definitely better to do the simplified method. I just heard about the simplified method today and with a 3500 apartment I can look for a big 300 square foot 2nd bedroom as an office to deduct the max $1500, awesome savings in taxes 👏 👏
@@efrainanaya5671 That’s what I was going to ask. It appears that I would be deducting mortgage interest for the entire house on schedule A and then claiming a portion of it again as a home office deduction. Did you find out if that’s ok?
What is you are an employee and own a business that you run from home? Also, in order to deduct, do you have to pay those bills through your business account?
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](http://i.ytimg.com/vi/5YggWhLeckM/mqdefault.jpg)
Super Happy I found this Channel1!! You literally explained it with grace and in simple terms! I appreciate you. My anxiety level went from 100% to 1%! Yay! Thank you, thank you!
Can you be a W2 employee AND self employed to qualify?
Yep, after you add your w2s you can add your self employment which is where you’d put those deductions
@@kiokosalaam8059we can add it with a schedule C?
Can I use a vacant mobile home as a office and shop, and deduct the rent and utilities?
How about if I am an employee and a business owner working from home...would your video explanation applies as well?
Question: Is the home office deduction taken on Schedule A or Schedule C(Income from an LLC)?
Your example of calculating the home office deduction according to the square footage percentage was confusing.This one and previous videos stated for homeowners: only certain components of the mortgage payment can be deducted (mortgage interest, property tax (included or outside of mortgage payments), etc. --the entire mortgage payment can not be deducted. I understand that monthly rent payments can, but you gave the example of monthly rent/mortgage payments which I believe is incorrect. Although, I think it was a mistake/oversight, this is misleading. Could you please make that correction on this video if it is applicable? If I am mistaken, I apologize! Thanks!
So can I use my business checking to pay my mortgage? I use my home for my business.
Happy I found your channel, no need to look elsewhere for Tax/accounting info. Looking forward to doing business one day.
Welcome aboard!
This will be my 1st year claiming the Home office deduction. My question is how do I actually get it applied to my annual tax filing? Is there a certain form to fill out and take to my filing appointment or can I just verbally walk through it with the tax representative? Thanks.
Thank you. That was thorough and clear!
Isn’t it on the simple a maximum of 300 ft.² times five dollars is $1500 per month that the Business has been using the Square feet henceforth that would be $18,000 at the end of the year that could be written off on the simple method
What if you are a virtual employee not self employed but you are buying office furniture, fixing broken office window. Are those depreciated assets? Where can we enter those?
Example: is the $5 per sqft 10"x10" office =500 a monthly or annually?
It’s an annual deduction on your return.
What an excellent video. Really well done. Thank you. 👏🏻
So do I just write myself a check once a month from the business account for the percentage of space I use?
I'm a full-time w-2 employee and I just opened LLC which is not related to my w-2 job. I have a designated area in my apartment and it's being used exclusively for the administrative and all other business purposes of my LLC. Can this home office qualify for tax deduction?
Don’t we already write off mortgage interest? How would that reconcile with this?
Are all insurances and expenses on the home part of the deduction calculation?
Where do you write off job searches? I am confused because I don't see one person on UA-cam selling advice on doing a 2106 related to job searches in the same field .
Sorry, to clarify, your entire mortgage payment is deductible by the percentage of your home office space? In the beginning of the video it says mortgage interest, so is it the entire mortgage payment or just mortgage interest?
If you have a home office but then sell your home after living in after 2 years, does the home office deduction affect the capital gains tax deduction?
How do you detach the utilities and transportation are you at home business
You made an example of a 3000sqft home (living built area I assume)...What what if the whole lot is $8000 sqft and I use alll the back yard for business purposes? ...What if I DONT use the open space or back yard to work, then the calculation wouldn't be based on 3000 sqft but 8000 sqft and the deduction would be a lot less in your example?....In conclusion does IRS consider the whole lot or just the built area?
this was very helpful, am i able to also deduct internet and electricity the same way?
The mortgage of $2k per your example is just the mortgage interest right? does not include the principal?
Does this make sense as a home owner, I hear it gets taken off as profit when you try to sell the house
What about if I am a W2 Employee and then open an LLC while still employed. I have a side hustle - how will this work?
Besides the rent, mortgage interest, & utilities, what are some of the things that would be included the “much more” category for deductions? 8:40
Is this up to date? My accountant told me I have to see how much office rent it going in the area
Can you use your converted garage into studio and apply this?
I can still take the deduction if I started my business in November, right? Instead of a year's worth of expenses, I'm thinking I'd just count the expenses for those 2 months? Please confirm whether this is ok. Thanks!
If I just entered the whole amount of rent, which is $1,200 per month plus give the square footage of a room, will the tax preparer do all those other calculations for me
This helped me a lot! Thank you. Happy New Year!!
7:09 You said "rent or mortgage payments" can be deducted. I am looking at the instructions for form 8829, and I dont see that mortgage payment can be deducted? Can you show me where they can or was that a mistake in the video?
Thank you very much for the video. I have a question: How can I do that we a partnership LLC? Thank you in advance.
Does this include a sole proprietor with a home based business?
What if you have w2 wages AND own rental real estate? Can I deduct my home office then?
Good explanation. But that calculation is wrong though at 7:54. 30,000.00x33 gives you 990,000.00. Did you mean 33% of 30000? You should clarify. Thanks.
He meant .33
Man, your videos and your information is awesome and appreciated. Can you explain this scenario for S-Corp? If you take a deduction of 18K/Year under a corporation, but on personal tax return it's 18K in rental income, so how is this really a tax write-off/deduction? Because it seems to me that at the end, S-Corp does NOT pay taxes, but the K1 personal statement pays for it. Is there a way to get by this? THANKS in advance.
I do UA-cam from home & operate a music studio at home. Can I use that ?
If W2 income and started LLC. will I be able to deduct home office expenses for a business that makes $0, meaning it will eventually deduct the taxable income from W2 income as there was no income from LLC?
In addition to the mortgage insurance, HOA, utilities, etc, would the office improvements like ceiling fan installation and flooring be a deductible expense?
I wouldn’t call it improvements, I would call it repairs/maintenance so in that case, yes! 😂
Great video! Thanks, your content is helping me a lot. The working in your garage and making products in your home kitchen examples actually wouldn’t qualify though right b/c they’re not exclusive to the business (assuming you use your garage for parking a car and a kitchen for cooking food)? Thx again!
For the home office deduction, I can't find anywhere talking about if you can still qualify for the home office deduction if you either live with relatives (but really work from home), or if it matters if you are really paying rent to those same relatives?
Can you claim this home office deduction if you aren't really paying rent (but are really working from home.)
What happends when u sell your house do u pay taxes
Can I deduct home office expenses if I have my own business, have a home office and receive a W2 from my employer?
What if u are an employee but also do a side gig and reason a 1099 form?
What if your home land is 1000 sq ft covered home 300sq ft & office 100sq ft?
Could I use this deduction on a 2 Bedroom Apartment ? Where the second bedroom would be completely for a Home Office?
What if you use your detached garage to run a side business workshop and it’s not included in the square footage of your home?
Is the detached garage on your land?
@@LYFEAccounting Yes it is. It is powered from my house and shares internet services with my home also.
@@kissmyassngotohell it technically is still your home. take the full sq ft
@@LYFEAccounting Thank You
@@kissmyassngotohell hit that mans cash app he gave you a gem lol
Very thorough explanation of this awesome small biz owner benefit...Great job!
You rock! Thanks for leaving your feedback 😃
Even if the w2 isn't from your business? In reference to qualifying tax payers
If it is not your business, in most cases, you do not qualify for this deduction.
Where do you put this deduction
Very helpful. Did you make the video home depreciation as it related to home office deduction
Wondering the same thing, can't seem to find it.
If in my home my spouse has a office and we already to a deduction for that, can I start another bsuoness in my basement and write that off to?
What if you are both I get W2 but I also run a business separate from my job? Does that just screw me out of it?
I have a question, and I apologize for my ignorance. If I have a full time job and a side business (home workshop), would I be considered a qualifying tax payer?
Hello, wondering if you were able to figure out this?
mortgage interest or mortgage (Principle + interest)???
Hey quick question. So I’m filing my taxes through turbo tax and if I use the same office space for 3 separate businesses, do I claim the entire office space for one business, divide that space into the three businesses or can I claim that entire office space for all three businesses?
Thanks in advance!
amazing question
Is this applicable in New York City?
This is for federal taxes, so it would apply for all states
HOA for a house or condo you live in can be added?
Is it possible to decrease your taxable income down to zero if you have a lot of deductions and didn’t make much revenue for the year?
Yes, it is possible.
I rent an apartment with a home office that I use exclusively for work-from-hom. can I deduct this?
do you work on a business in your home office?
Can you do this as a W2 employee that works exclusively remotely?
No.
Thanks a lot for the well thought out vids.
My question is, how do you determine when should try to utilize this deduction?? I am a new Homeowner and have allotted my whole lower half for my studio. I’ve bought some expensive equipment as well and I’m trying to find out if it would be worth me filing as a sole prop? I’ve made no income, just money going out. It would be great to get a little back for what I’ve spent but I can’t get any CPA’s to answer these basic questions where I’m at!!?
You could've purchased all that gear under an LLC and you wouldve gotten a tax break. Did you do that with your regular taxes? Create an LLC anyway and if you keep buying gear, use your business card to pay it.
@@NanoverseProductions thanks for your reply. Learned a lot since I posted this and have secured my LLC as well as a business card. 💫
Next feat is going to be filing taxes for the purchases I’ve made. I’m hoping to get something back off of these expenses and not end up owing!
If we have a home office and we also rent out a portion of our single family home, then can we deduct the 7 deductions (video: 2.48) in proportion , for both these separately from our income? Pls advise?
In the example you gave at the end of the video, you deducted part of the mortgage and not just the mortgage interest. Ij other parts of the video however you specified that mortgage interest cam be deducted (not principal itself).Is that correct and is it allowable? Thank yoi
Great video! What about if you have multiple jobs - one that you’re considered an employee and get a W-2 and another job that you user your home office for? Does this make someone qualify or can you not be an “employee” at all, anywhere, and must be full time business a owner/independent contractor?
Can't use this deduction for employee-related work.
@@LYFEAccounting sorry maybe I didn't explain myself correctly. I guess I was wondering if I am disqualified because I have another job that considers me an employee? I'd only look to seek this deduction for my contract job
@@blakestimac that's a good question and I'm wondering as well
I am not an accountant, but for the bit that I know, it is irrelevant whether you have a regular job as an employee. The only matter that counts is the portion of your home that is exclusively used for your business.
I am no expert but I will say i am an employee at a Regular job, (wage earner) and i ALSO opened a home based business in my home, an LLC and not made a single profit but i was able to deduct my start costs for my home business therefore offsetting my taxes i wouldve paid on my Regular-employee job !!
I will add that i knew this is possible bc i used TurboTax and it allowed me to do just that..
I'm confused when you said employee with w2 cannot deduct home office expenses. I work a regular job and receive w2. I also thinking about getting a sole proprietorship business register. Can I not claim my home office deduction? I thought if you have a sole proprietorship you claim taxes with your personal income taxes. Which will be my w2.
You can't claim the home office deduction unless you have a business that works in a part of your home regularly and exclusively. Simply having a sole proprietorship with no actual business does not qualify. Do you plan to start a side business or change to a 1099 contractor?
@@LYFEAccounting Yes I plan to start a event decorating business on the side.
Question- can you write off the entire mortgage note if you have a house cleaning business and you use your personal house as a model house for your business to show potential clients the quality of your work?
I that is definitely too good to be true and not going to work
I don’t think so lol. I was doing research and I don’t think you can claim your mortgage principal, only the mortgage interest
It has to be regularly and exclusively used for business, so no unless you don't live in the house and only do business there
The mortgage interest, the taxes you paid, water bill, electricity, internet, construction work done in house, the heating boiler you changed, the electricity wire changed
I currently rent my townhome can I claim my home office on taxed as a 1099
Amazing video! You made it so easy to understand...ty sooo much!!
What if the you work and own a business do I still qualify?
can you write off home office deduction when you are living with your parents and renting the 2nd floor of the house?
I don't know all the details, but I am 99% sure you can
As business owners you also get paid W-2 so make sure to mention that .
To be fair, not all business owners receive a W-2.
Every day I work out of the clubhouse/business center (use the computers/printers and coffee lol) of my apartment complex. I pay rent. Can I use the square footage of the clubhouse to determine my deduction? My clients even come in and meet with me in the conference rooms. I also take professional pictures in the clubhouse for my social media. Surely this can be deducted in some way?
Good question, yes I would think so
Can you get these deductions if you use a virtual office?
I’m an affiliate for a beauty business …. How does this work ?
So I have a question on the home office deduction. My business room is 144sq feet and my total house square feet is 1432 so about 10%.
My mortgage which includes taxes and insurance is around 1500$/month.
Would it benefit me to do the simplified method in which I would get 720$, or the 10% which is about 150$ but can either of them be able to include deduction the water and electric at 10% as well then? Thank you
It’s definitely better to do the simplified method. I just heard about the simplified method today and with a 3500 apartment I can look for a big 300 square foot 2nd bedroom as an office to deduct the max $1500, awesome savings in taxes 👏 👏
I work Full time and run a small business from an apartment. Can I still use the deduction?
Possibly. We’d need more info on the business to advise. If you file your business taxes with us, we’d certainly look at it for you.
I LOVE your channel. You guys explain things so CLEARLY - and that takes TALENT! Thank you!!
Wow that means a lot thank you!!
I agree
Thank you. Well explained. I appreciate you.
Great Video! Keep up the good work
What if you own a buisness and use your home as your office and you also work a regular job with a w2
How would this work if my home was open concept
If a person make income from stock/options trading...
What would be the most efficient way to write off some of the income for taxes ?
You’ve got to pay taxes on gains but take advantage of tax loss harvesting when you can.
Do you have to use a specific form to use the home office expenses?
You are working a business from home right? If so, form 8829
This is going to bring huge savings during tax time, free $$$
💯
Great information 👍🏾 very understandable 👍🏾
Are you in Florida?
I work from home but for a company… Can I still do some sort of tax reduction.
Absolutely! Check out this video here: ua-cam.com/video/aLGyEio20s4/v-deo.html
This is exactly what I was looking for
Dang this is good. Smart and clear. Rare and appreciated. Thank you.
Great info! Thanks so much for the video
What if we don’t have room for a home office can the living room count ?
Yes
@@LYFEAccounting the whole living room or just a certain part?
Can I claim this deduction even if I am itemizing this year? I do meet the requirements for deduction.
Yes if it is for a business!
@@LYFEAccounting great in my head I am thinking oh this double dipping the irs won’t like that.
@@efrainanaya5671 That’s what I was going to ask. It appears that I would be deducting mortgage interest for the entire house on schedule A and then claiming a portion of it again as a home office deduction. Did you find out if that’s ok?
What if you have a job for you receive W2 and a home based business
As long as you have a home base business, you qualify
great info, but I wish you went line by line through form 8829 since there seems to be a lot more info needed and not discussed.
What is you are an employee and own a business that you run from home? Also, in order to deduct, do you have to pay those bills through your business account?
So you gonna make me watch the whole video...good one ...Im in!
💯💯
Great videos.
But wait I’m a little lost.
$30,000 x 33 = $10,000? (7:52)
I must have missed something.
My calculator tells me 990,000