How to breeze through tax season with office deductibles

It’s no secret that the IRS is an iron-clad bunch, but that doesn’t mean you can’t exercise your rights as a self-employed US citizen come tax time. Whether you own a small enterprise or a midsized outfit, the following are office items legally deductible from your taxable business income.  

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Home-office

According to the IRS, a space or room devoted exclusively to your business is a valid tax deduction. Measure the work area or work room, then divide the figure by the square footage of your entire home. Apply the resulting percentage to the total amount of home-related expenses sustaining your work room or work area (rent, mortgage, home insurance, electricity) – the product is the amount you can claim.

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Office supplies, equipment, and furniture

Founder and major shareholder for Dallas accounting and tax planning firm Kimball Parks Ramey PLLC Kimball Ramey stresses the importance of tracking business purchases in receipts and card statements, as these activities are a huge tax-cutting opportunity.

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Office furniture like desks, chairs, and filing cabinets are deductible either by claiming 100 percent of the cost on the year of purchase, or via depreciation, which cuts portions of the total expense as a write-off across seven years. The same claim options go for office equipment, although computers, copiers, scanners, and fax machines have a five year-depreciation period.

For Ramey, who has frequently spoken as tax expert on KLIF 570 AM McGowan Group’s NetWorth Radio, it’s best to determine when your business will need these deductions the most, then file claims according to that.  

With over 30 years of experience in accounting, tax planning, and wealth management, Kimball Ramey leads Kimball Parks Ramey PLLC in providing custom-fit strategies for its local and international clients’ financial needs. Visit this website for more information on the firm's professional services.