Self-employed workers usually get to enjoy the perks of working from home. Having a home office also provides you with a significant tax deduction, if you qualify for it. To be eligible for the deduction, the home office area must be used regularly and exclusively as the principal place of business.
If you work from home, you may get to deduct some major expenses applicable under the home office deduction such as mortgage interest, insurance, utilities, repairs, depreciation for that area, etc.
As an independent business coach, you can claim the home office deduction by setting up your workspace within the premises of your home. To claim the deduction, you can proportionately split your home rent/mortgage interest and utility bills into personal expenses and business expenses, depending on the portion of space your office consumes.
The deduction amount relies heavily upon how much of the house is devoted to your business, to do that, you will be required to keep detailed records of all the bills and receipts. Here, you can use tax engines like FlyFin A.I., the app allows you to track expenses and income on an “ongoing” basis, making your taxes easier and more accurate. Moreover, the app is backed by CPAs whom you can consult to determine what sort of home office expenses you can possibly deduct.
Want to know more about FlyFin? Head on over to https://flyfin.tax