|Writing Off Home Office Expenses|
Using space in your home to operate your business allows you to write off a percentage of your home’s overhead including property taxes, insurance, mortgage interest and utilities. You can also write off a percentage of the regular (non-capital) repair and maintenance you make to the home. Note that expenditures made in the business space for business purposes only (eg putting up shelves or painting, are written off as all business expense, not just a percentage). The space must be used for business purposes on a regular, ongoing basis (eg not the kitchen table).
If you use space in the home for your office or conducting business, then you need to account for the amount of time it is used for business over the total time in the period (year). Multply that percentage by the square foot percentage to determine the accurate rate to apply to your expenses.