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Bill Akleh
05-18-2012, 05:30 PM
I do some of my work in my office but a lot of my work in my home in a designated computer area. I live in a residential area (I rent) - should I write part of my rent of as a business expense (if so, how to calculate percentage)? Any advice would be appreciated. It was dumb of me not to think about this until now I guess.

Evan
05-18-2012, 07:35 PM
Square footage.

The thing that's important to remember that it has to be used regularly and exclusively for business.

Tax Topics - Topic 509 Business Use of Home (http://www.irs.gov/taxtopics/tc509.html) has more details on this.

Evan
05-18-2012, 07:36 PM
Though I just noticed you're "north" of the US border... and I don't know Canadian tax laws.

Bill Akleh
05-21-2012, 02:16 PM
Thanks - I would assume the principles would be the same and that is a sound principle anyway. I'll have to take stock of all the factors and find some information maybe on the Canadian Revenue agency site.

Evan
05-21-2012, 10:51 PM
I'd also recommend finding a chartered accountant as well, as they may be able to help you a bit more :)

Bill Akleh
05-22-2012, 05:04 PM
I'd also recommend finding a chartered accountant as well, as they may be able to help you a bit more :)

Yes, you are right that is probably a good idea :)

AccountantSalary
05-26-2012, 08:35 AM
Here in the U.S., I set my business up in a small closet of a rental and was able to deduct the square footage. The key here is using it exclusively and regularly for business. That means you can't be playing games on the computer in there.

I wasn't audited at all so the IRS agreed with my definition.

Evan
05-27-2012, 09:31 AM
I wasn't audited at all so the IRS agreed with my definition.

Not being audited by the IRS doesn't mean they "agree with your definition". Only if they audit you will they tell you whether that methodology is reasonable...

bradjones
06-19-2012, 04:16 PM
Yes, you are right that is probably a good idea :)

I completely agree with finding a chartered accountant. That would certainly be a good start.