Homeowner/business tax question


S

SueMcArthue

I bought a house for my small business and also to live in it for
20.000 $.

Half is used for business, half is used for living, although I work
most of the time and I have not much time for living.

I paid cash and the entire amount. I have no mortgage. How can I
deduct this? Over several years?

Any serious advice is appreciated and I thank you already in advance.

Sue McArthue
 
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A

Arthur Kamlet

I bought a house for my small business and also to live in it for
20.000 $.

Half is used for business, half is used for living, although I work
most of the time and I have not much time for living.

I paid cash and the entire amount. I have no mortgage. How can I
deduct this? Over several years?

Any serious advice is appreciated and I thank you already in advance.

Sue McArthue
For tax purposes, if you have a portion of your home used
Regularly and Exclusively
for business, you may have an Office in the Home deduction.



See http://www.irs.gov/publications/p587/index.html for more
information. It is more complex than it appears, and you will
eventually be depreciating the OIH and claiming ordinary
and necessary expenses. Only OIH expenses in excess of your
business profit can be claimed.


I recommend when you place a property into business use that
you obtain the services of a local tax professional, since
you want to get it right the first time and there might
be state and local issues you need to understand, and you
will learn what records to keep and how to keep them.
 

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