Question by : If you run a home based business can you use business money for rent and write it off as an expense?
If you run a home business can you use money from the business not the money you pay your self as the boss but money you use for expenses related to the business for rent and utilities and internet? Also can these items be written off on income taxes?
Answer by –
Short answer, no.
If you are operating out of a residential home, you can only attribute part of the space to the business, such as an office space. You can deduct anything that is SOLELY used for the business, but that’s as far as it goes. YOU are on the lease, not the business, so it is not an expense. If you try deducting the rent as an expense, you’ll be audited and pay heavy fines. It sets off a red flag, even a home office does. It’s part of the automatic triggers the IRS system uses to detect fraud and conduct an audit.
I’m sure a CPA will confirm this.
What do you think? Answer below!