Clean Run - March 2012 - 36

Unrelated expenses, or the expenses for the parts of the home not used for business, are not deductible. Landscaping or lawn care, for example, cannot be deducted even if done to enhance the look of the business and home o ce (with the exception of someone in the landscaping business).

Adjacent Not a Missed Deduction
If the home o ce is a separate structure that is not attached to the residence, it may qualify for the home o ce deduction without meeting the exclusive use requirement. The structure merely has to be used in a trade or business. Proving the structure is used “exclusively and regularly” in the business is also necessary, of course. Every business, business owner, and professional can deduct a reasonable allowance for the exhaustion, wear and tear of any property used in a trade or business, or property held for the production of income. Unfortunately, while the portion of the home used as a home o ce may qualify for a depreciation write-o , land is not depreciable. In fact, when a building and land have been acquired for a lump sum, only the building is depreciated. So-called “land improvements” are depreciable, however, and can be deducted or written-o over a 15-year period. Examples of land improvements include such things as sidewalks, driveways, curbs, roads, parking lots, canals, waterways, drainage facilities, and even non-agricultural fences. Landscaping and shrubbery is a depreciable land improvement if it is located near a building and would be destroyed if the building were replaced. As for the course, obstacles, etc. used in a training facility or agility course, if they are rebuilt or replaced every year, their cost may be deducted in full as a legitimate business expense. If they have an expected useful life longer than one year, their cost must be depreciated and written-o over a number of years, the exact number dependent on each situation.

The safest and bestselling jump cups in the world, Clip and Go Jump Cup Strips are now available in two styles!

Made of UV-stabilized polypropylene Molded in jump height markers Jump heights from 4" to 26" Use with 1" or 1-1/4" PVC pipe Guaranteed not to break

the tax deduction is available for the expenses of using the home for business purposes, it is only for those expenses that apply to the portion of the home used exclusively and on a regular basis as a home oﬃce or training facility.

While

What’s Deductible
Not one deduction, but many since when speaking about the home o ce deduction, the rules refer to a group of smaller deductions. The common denominator among these deductions is that the IRS has devised a single test to determine whether an agility instructor, kennel or training facility operator, or the activity quali ed for all of them. If what the IRS calls the “business use of the home,” test is met expenses for that business usage may be tax deductible. These expense amounts are totaled to get an overall deduction that is reported on IRS Form 8829, Expenses for Business Use of Your Home.

Clip-on Strips

Don’t Overlook Other Business Expense Write-Offs
Sliding Jump Cup Strips
Some deductions are available even if the use of the home or adjacent grounds don’t qualify for the home o ce deduction. For example, home mortgage interest and real estate taxes would be allowed as an itemized deduction on Schedule A of the tax return even by those who can’t take a home o ce deduction. O ce supplies, postage, and the cost of bringing a second telephone line into the home for business use may also be deductible. Moreover, the cost of computers and o ce furniture purchased to use at home may be deducted, even if the cost of the o ce itself doesn’t qualify.
Clean Run | March 12

www.cleanrun.com
36

http://www.cleanrun.com

Clean Run - March 2012

Table of Contents for the Digital Edition of Clean Run - March 2012