Indirect Expenses. An indirect expense is one that affects the cost of running your business, even if it is not necessarily incurred as a direct result of running your business. Examples of indirect expenses
Wholesale Usa Cigarettes for a home office include mortgage interest, real estate taxes, homeowners insurance, water, heat, electricity and waste removal. Obviously, you cannot deduct the full amount of your living expenses, but you can deduct the portion related to your home office. In order to figure out how much is allowed, perform the following calculations:
Calculate the percentage of your home used exclusively and regularly for business. There are two ways to make this calculation:
Take the square footage of the office space (length multiplied by width) and divide it by the total square footage of the house. For example, if your home office is 12' x 15', or 180 square feet, and your home is 1200 square feet, the business use percentage is 180/1200, or 15%.
If the rooms in your house are roughly the same size, divide the number of rooms used for business by the total number of rooms.
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