Business Use of Your Home
Posted 25th December 2018 by admin
Mrs Katie works from home. She runs a content creation business for a large pharmaceutical company. She works in one room where her desk and computer and documents are placed. She works for 5 hours per day during a week.
MORELAND’S HELPING WITH CALCULATING HER TAXES
Moreland calculated her taxes for her business working at home. She could have charged a lot more taxes had she tried to do submit her tax returns herself.
Instead, she was guided to submit her taxes using a fixed reduction instead of the more complex calculations. The amount depended on the monthly hours of her business use.
RESTRICTIONS THAT WERE APPLIED
1. The hourly work that is termed as qualified work exclusively done for the purpose of the trade.
2. Only one deduction is allowed for each hour, irrespective of the number of employees working to do the job.
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