The Internal Revenue Service (IRS) website offers several resources to assist new and small business owners with information needed to understand and meet federal tax obligations. Tutorials are available on-line and are conveniently labeled for easy accessibility anytime.
In this section, the IRS provides information from calculating and claiming deductions for business activities in the home as well as business use of the home.
The IRS provides guidance on the requirements to qualify for a deduction, how to determine the business percentage of home use, the types of expenses than can and cannot be deducted, how to determine the limits, and where to deduct the expenses on your tax return.
Please note: The term “home” includes a house, apartment, condominium, mobile home, boat, or similar property which provides basic living accommodations. The guidance also includes structures on the property such as an unattached garage, studio, barn, or greenhouse.
The IRS “Business Use of Your Home” resource provides details on:
- Simplified Home Office Deduction
- Qualifying for Business Use of the Home Deduction
- Activities that Don’t Disqualify the Home Office
- Deduction Limits
- Types of Expenses
For a complete list of deductions, qualifications, and details, please visit the IRS Business Use of Your Home page.
The IRS website for businesses also provides resources for understanding business expenses, business income, taxes and more. It’s easy to use, provides the most current and accurate information, and is updated frequently to help new and small business owners with the information needed to meet federal tax obligations.
As an experienced payroll partner, Southland Data Processing also offers support to help keep payroll processing organized, compliant and accurate. Clients can expect to have access to a variety of resources, training and educational webinars to stay current with the latest news and information.
For more information about our payroll services, please contact our payroll professionals at 909.946.2032. Or, click here and Let’s Talk!
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*Southland Data Processing, Inc. (“SDP”) is not a law firm. This article is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other SDP materials does not create an attorney-client relationship. SDP is not responsible for any inadvertent errors that may occur in the publishing process.