![]() For example, if your office is 500 square feet and your home is 1,500 square feet, one-third of your home utility bill will be deducted. If you sometimes use equipment and utilities for nonbusiness activities, your deduction will be based on the percentage of business use. The way your office expenses are deducted depends on whether you operate your small business from home or from another location. In addition, if you purchase new equipment like a printer or computer, or new furniture like a desk and chair, you can include those purchases in your office expenses. Office expenses also include improvement purchases such as new carpeting, lighting and paint. ![]() Even if your office is run from your home, you can still count utilities on your taxes. ![]() These include utilities such as phone, heating, electricity and internet access. Think of office expenses as the costs that are not part of your everyday use of tangible supplies. Regardless of the expense, keep receipts and maintain records to make tax time easier. Where to put each expense on your taxes depends on the type of purchase you make. Including these expenses when filing your income tax return can help you maintain a healthy profit margin for your business. 4 Tax Deductions for Independent DistributorsĪ small business office has expenses ranging from furniture and utilities, to paper and ink.2 Difference Between Office Supplies & Expenses for Tax Purposes.
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