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How can i calculate the cumulative percentage?

How should I calculate the percentage of expenses used for business?

  • What percentage of my home phone, internet, heating, electric, etc bills is eligible for a tax deduction? We use our home in order to conduct the business of renting out a few apartments. How do I figure the correct percentage? The time and space used for conducting the "business" varies soooo much throughout the year. any advice?

  • Answer:

    Use the square footage of the room you use for business and divide that by the sq ft of the entire house. Take that % times utilities and other household bills, except food.

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Other answers

You won't be deducting anything. Renting a few apartments out isn't going to require a dedicated office so you will flunk the exclusively and regularly tests. If you had long distance calls, add those to the schedule E.

Quick Answers

You can only deduct the % of the total that is the space you use regularly and exclusively for business. From your description, it's very doubtful if you qualify to deduct home office expenses at all.

Judy

If your office is the dining room table, multiply your expenses by zero. If you have one room devoted solely to business, you can prorate expenses by square footage.

wartz

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