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Thread: Deduct part of my rent?

  1. #1
    SpeakngEZ
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    Default Deduct part of my rent?

    My manager at the club was going over tax information with me and mentioned that a CPA might be able to get part of my monthly rent (for my apartment) deducted. Does anyone have any experience with this?

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    God/dess britneyireland's Avatar
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    Default Re: Deduct part of my rent?

    its called the home office business expense deduction.

    to qualify you have to have an office space. caluclate the square footage of your office.
    for example mine is 10 by 12 feet or 120sf

    then divide that by the total square footage of your entire apt
    for example my house is 2400sf

    so my office is roughly 5% of the total square footage of my house.
    I deduct 5% of the annual cost of my mortgage, waterbill, electric bill, gas/utilities, housekeeper, alarm system....anything type of bill that an office building would also have overhead for.
    Rebecca Avalon







  3. #3
    SpeakngEZ
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    Default Re: Deduct part of my rent?

    Thank you, Britney, that was actually very helpful.

    I wonder how I can do that with my studio apartment.... maybe section off the corner I usually sit with the laptop/ paperwork and dub that my "office."

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    Default Re: Deduct part of my rent?

    The tax law as I know it requires the "home office" to be a dedicated and seperate room/space. Les Nessmans imaginary walls are not going to cut it.

    As long as you are renting it is not an issue but if you are a homeowner there is a serious down side to the "home office deduction"

    What you are actually doing is deprecitating the value of your house, the IRS term is basis.

    How it works is like this, you bought the house for 100 grand however many years ago, you now sell it for 140 grand, your profit is 40 grand, this is the amount that if you don't roll it into a new house you will have to pay taxes, capitol gains taxes on.

    Now if over the years you wrote of 10 grand in home office expenses your basis amount will be 90 grand vice 100, so your "profit" will be 50 grand vice 40 so in the end the home office deduction isn't the great deal that everyone thinks

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    God/dess threlayer's Avatar
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    Default Re: Deduct part of my rent?

    Quote Originally Posted by phonehome View Post
    The tax law as I know it requires the "home office" to be a dedicated and seperate room/space.

    What you are actually doing is deprecitating the value of your house, the IRS term is basis.
    You do not have to depreciate your home office; in fact it's usually better if you do not. In fact unless you EXPLICITLY make a depreciation deduction on the Sched A or C and on a SEPARATE DEPRECIATION FORM, claiming a home office deduction is not also claiming a depreciation deduction.

    That is just false.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    God/dess britneyireland's Avatar
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    Default Re: Deduct part of my rent?

    As always....hire a licensed accountant who is familiar with the entertainment industry. Mine works across state lines.

    I like threlayer's disclaimer.
    Rebecca Avalon







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    God/dess verfolgung's Avatar
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    Default Re: Deduct part of my rent?

    SpeakingEZ, were you talking about State or Federal taxes?

    In MA we're allowed to deduct a portion of our rental payments. Has nothing to do with home office. Kind of evens the playing field for owners vs. renters.

    As said before, check with your tax professional.
    If you can't win. Make the fellow in front of you break the record.


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    Veteran Member Robertjordan's Avatar
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    Default Re: Deduct part of my rent?

    The IRS rules for a home office are very strict and one the red flags (things that get a closer look). I'd be very careful and make sure you understand the rules and what you're doing before taking it as a deduction. First and foremost it has to be a clearly defined area, separate from the rest of your house. That's usually a room solely dedicated to business. If you live in a studio that wouldn't qualify. There are some other issues about taking your home as a deduction that you'd run into.

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