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What can I deduct Home based Business and 1099?
Started a Home based business 6 months ago and received a 1099 what can I deduct? Or just a percentage?
I know I can write off a percentage of my home for home office or used to years ago. Are there any changes to this. Example 10 percent of home used for business, can I still use, 10 percent of utilities? All my orders have to be done on internet will I just deduct part since I also use computer for home use. Also have my beginning mileage for the year and ending and the miles used each day to drop off orders. Do I need exact mileage start and stop for each day?
Thank you for any help
Home Party Plan sales. (Scentsy)
On mileage I have the starting mileage for the date I started business. Also have in a date book written down the mileage for the Parties and orders. example 3.5 miles but not a starting and ending for the day. Also have the end Mileage for the year. Yes vehicle is also used for personal use but was just going to write the actual mileage used for business purpose. Just didn't know if I had to have a start and finish mileage daily.
3 Answers
- JudyLv 71 decade agoFavorite Answer
To take a home office deduction, you have to have part of your home that you use REGULARLY AND EXCLUSIVELY for your business. Doesn't sound like you meet the exclusive part, saying for example that you use the same computer for personal use as for business use. So doesn't sound like you have a home office deduction. If you don't qualify for a home office deduction, don't claim it - that's something that's heavily audited.
You need to track your mileage by day, and note trips as business or personal, doesn't sound like you'd have commuting miles unless you also go to a job. If you have all the detail on trips for business, you're probably OK, but start keeping the daily detail, an auditor can require it.
Without knowing what your business does, it's hard to say what you can deduct. More info please.
- ?Lv 71 decade ago
You need a daily log of mileage for business
Proving home office is very difficult. Friend owns a company for close to 30yrs and uses 1 room as the office. Every 3 yrs IRS comes to see eqquipment, measure the sq footage in use. All computers in that room are checked to ensure no personal documents.
- troLv 71 decade ago
yes, you need to keep a good log of your mileage
and the use of your home has to be exclusive to the business, the part you set aside for your business
and the internet would have to be a separate connection to be deductible, just like your phone has to be a separate line just for the business
likewise the computer, if it is also used for personal use you can't determine any %, you would need a computer just for the business
