More kids than rooms. Home office still no problem.

Dear June,

I read your Features articles with great interest - you really have a talent of explaining complex things with an easy language and with a good humor. Great job!

About me and my business. I just started my own business a week ago. I am doing my taxes with Liberty Taxes and they promised to help me with my business as well, however I would like to receive list of business expenses that I could save on to be better prepared when the tax time comes.

My profession is software developer. I am an independent contractor. I live in Boston, MA I work 2 week in NJ at client's office and other 2 weeks from home. I drive to NJ and stay there in the hotel for work-week 2 times a month.

According to your articles it should be considered as business trip and I can claim car mileage, lodging and even food (at 100%, not 50% correct?).

I have my office setup at home, but it is a part of a big room and not separated. Can I still claim reasonable part of that room as business expense or not? I keep all my books there, but at other side of the same room is my son's bed - I have more kids than rooms and I need to catch up on rooms :)

Thank you in advance!
Thank you.
Tigran


Hi Tigran,

I will assume that you have more than one client and are really self-employed.

When you travel for business you may deduct all travel expenses, including meals and snacks. Although meals and snacks are 50% deductible, not 100%.

A home office does not have to be an entire room. It can be only a few square feet of any room, as long as it is used exclusively for your business.

There are many posts on this blog abut home office and travel. You might want to take a look at them. See the Topics list on the left.

Good luck on increasing the # of rooms!

Cheers,
June