I am 1 of the 2 partners in a home based business which currently is run out of my partner’s home. The business consumes space and also utilities. I am trying to come up with a fair rate for rent and a fair calculation for the use of utilities based on what is used for the business. Can someone suggest a guideline here?
I personally don’t feel that the company should be charge full fair market value for rent since I believe it’s a convenience to be able to work at home. Does anyone agree or am I way off here?
July 6, 2009
Although it is completely legal to use a home based office as a tax write off, be aware that it is one of the HUGEST RED FLAGS in a home based business. The IRS has very specific guidelines that need to be followed and unless you plan to follow your deductions to the T… don’t do it. Look for other things that don’t send up red flags!
Just word of advise given to me by our tax attorneys.
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