Is That Deductible?
Click here to read the complete article
By William Given
Like the proverbial bad penny that keeps coming back, tax season is upon us. And, while there is a wealth of information out there about tax deductions for small business owners in general, when you operate a purebred dog breeding business out of your home, it can be far more challenging to see just how some of the tax laws realistically apply to you.
We know that for breeders, every penny saved can have a significant impact on your bottom line. That is why we have created a list of small business tax deductions available to breeders, paying special consideration to how your status as a home-based business may impact the write-offs.
Home office space
Your “office” does not have to be a separate room. However, it must be a space dedicated to work. That means the kitchen table or a desk where your children also do their homework does not qualify. Deductions are based on the percentage of your home devoted to business use, which is determined by dividing the square footage of your business workspace by total square footage of your home.
Mortgage interest
As a homeowner, breeders are allowed to deduct mortgage interest on their personal tax returns if they itemize. Even better, if you use a portion of your home for business, breeders can deduct a portion of the mortgage interest on their business Schedule C.
Mortgage insurance
Click here to read the complete article
Short URL: https://caninechronicle.com/?p=197081
Posted by AnthonyA
on Feb 5 2021. Filed under Current Articles, Featured, Uncategorized.
You can follow any responses to this entry through the RSS 2.0.
Both comments and pings are currently closed.
Comments are closed
