Home is where the heart is. But for more than two thirds of all start-ups, home is also where the business is. Internet commerce and mobile technology have made it possible for entrepreneurs, and their workers, to survive and thrive, from the comfort of their own homes.
At this time of year, as thoughts naturally turn to hearth and home, your friends at TBS Capital Funding would like to remind you that your home office is a great tax deduction. The IRS offers two ways to calculate this deduction – the old “actual” expenses method, where you document your home expenses and deduct a share proportionate to the square footage allocated for business; and a new “safe harbor” method, effective since 2013, which assigns a standard $5 per square foot deduction, up to 300 square feet. As with any deduction, it makes sense to compare the two methods, to see which is best for you.
TBS Capital Funding does not offer tax or legal advice, but we can help get you through a cash crunch come tax time. We transform accounts receivable to cash, typically same-day, giving you the immediate cash you need to pay your tax bill, without loading you up with debt. Try it out today!