Oct 31 2008
Home Office: Buy what you need but do not waste money to save taxes
Tax deductions extend beyond the home office space. The items that furnish it are tax deductible as well. Even so, it is not a good idea to buy something to save a little money if you don’t need it in the first place.
As year-end draws closer a lot of small business owners take inventory and decide whether to buy supplies, office furniture or electronics. Maybe that three-year-old computer is way too slow. If you replace the computer that old printer won’t work with it. A new cell phone with mobile office capabilities would provide the opportunity to more work outside the office. Laptops have shrunk in size so they are easy to carry along on sales calls.
Desk, desk chairs and even paintings on the walls may be necessary to dress up the home office to welcome clients.
The idea of tax deductions for a home office is not meant to create frivolous shopping sprees. They are intended to help small home businesses improve their efficiency with the idea that they will be successful and will further stimulate the economy.
