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  • Honey Hive Bookkeepers

Can You Deduct Utilities for Your Home Office?

If you have a home office there are certain expenses that you can and cannot deduct. A home office expense is deductible for a sole proprietorship and for other businesses dependent on certain factors.

The home office deduction is calculated as either a percentage of actual expenses or as a flat rate opines the square footage of the home office. The flat rate is determined by the IRC and will be published by the IRS. The actual expenses are multiplied by the percentage of the home that is used for business purposes (based on square feet). Utilities are among the actual expenses that can be deducted for a home office. So in other words yes you can deduct utilities for your home office if you are a business owner, have the appropriate documentation and policies in place based on how your business is taxed, and are using actual expenses.

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