Starting a business in your new home – Podcast 7

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Business use of homeDo you ever dream of working from home?

Perhaps you became a certified personal trainer and would like to setup a gym in your garage.

Maybe your an author or even run a non-profit business from your at home office.

Lastly, I have to drop this one in there…  Perhaps you complete mountains of real estate paperwork in your home office (like me).

Whatever it is you do working from home can be very rewarding.

Obviously there’s some expense in owning your home which carries over to your business.

How do you know exactly what those expenses are?  And how do you account for them?

What does business use of home mean to an accountant?

Simply put, business use of home is when you exclusively allocate a section of your home for running a profitable business.

Say you are writing books and you use the den in your home for a office to write those books.  You do not use the room for anything else such as a game room or guest bedroom.  You use it exclusively for business.  That could be conceived as business use of home.

An added bonus for working at home is the IRS provides some Tax ride-offs for business use of home.

It’s only fair as if you did not use your home you would have to rent someplace which would be deducted from your business’s profits anyways.

This is where things start to get complicated though.  You really need a good accountant to help you setup your at home business and stay within the IRS guidelines.

Introducing Cooper McGeorage, Tax consultant & owner of McGeorge accounting services

In the discussion below Cooper explains exactly what is business use of home and how to setup your home business area.  He also gets into when it’s prudent to take the tax ride offs for business use of home and when it is not.  So if you are looking into running a business from home then you are sure to love what Cooper is going to share with you!

cooper-mcgeorge

Play
  • What is business use of home?
  • Does your business qualify as a home business?
  • Calculating your tax ride off
  • Allowable deductions
  • And more

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Got tax questions?

Tax law is exceptionally complex.  You will certainly have more questions for Cooper when you are done.  Grab a pen and paper while you listen to the podcast and write down any questions you have.  Drop him a line after the podcast at cjmcgeorge@gmail.com or call him at 520-610-2454 and make sure to tell him I (matthew) said hi!

Want to know more about Cooper McGeorge?

Cooper and his wife graduated from the University of Arizona back in 2008.  They have a growing tax practice with an offices in Tucson, Arizona.  They recently added a new office up in Phoenix and work between the two.  Cooper has advised me on my taxes ever since I became a business owner back in 2010.  He is an exceptional accountant and what sets him apart from the rest is his level of service.  He’s quick to answer questions and excellent at explaining the intricacies of tax law.