Home Office. No longer a write off!

Discussion in 'Business Operations' started by Charles, Mar 1, 2019.

  1. Charles

    Charles Moderator, Friend, Angel
    Messages: 11,810

    Beginning January 1st 2018, Using part of your home as a write off is now a no no through 2025. Writing off your accountant expenses is no longer a write off through 2025. What else is there that we can't write off this time?
  2. Wye Oak Tree

    Wye Oak Tree LawnSite Fanatic
    Messages: 6,187

    Further restrictions on taking clients out to meals/entertainment.
    I was just talking to a business owner about that yesterday.

    Charles likes this.
  3. weeze

    weeze Banned
    Messages: 17,196

    you never could do that unless the room was only used for an office and nothing else at all. like if you had a computer in there and used it to surf the web in your spare time then you couldn't write it off as an office....or if you hung up your clothes in the closet in the same room then you couldn't write it off as an office. anything you also use for anything personal can't be written off even if it's mostly used for business stuff.

    they are pretty stupid about the rules. same thing as using your personal truck in your business. you can't write it off even though you drive 7000miles a year for the business and only 3000 miles a year for personal stuff. you can only write off the mileage driven for business but not purchase cost. they should at least let you write off 2/3rds of it since that's the amount of time you use it for business. after all we buy a truck because we are in this business and need it to tow a trailer. if we weren't in this business we may buy a car or something cheaper that gets better gas mileage.

    the thing is people write this stuff off anyways breaking the rules. that's why they are putting a stop to it altogether.
    Last edited: Mar 1, 2019
    Mdirrigation, knox gsl and TPendagast like this.
  4. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 16,926

    A little bit of a war on those "In home business" models going on, Im pretty sure its deliberate because so many of the "internet/ebay" types skating around the legality of operating a business and people in 'high places' took notice because they are cutting into their "profits".
    When you are politically connected, you can make anything happen.

    The thing is not intentionally pointed at a lawn guy running out of his home, specifically... it's just a casualty.
    Like anything if you dont behave, someone will get caught and ruin it for everyone.

    The government wants businesses in commercial property paying taxes and where they can "find them".
    Once they do that, the next level of laws get passed... eventually any business operating out of a home is illegal and it makes it much easier to spot the drug and black market operations.
    From the grapevine Ive heard; that's the 'intention' of what's going on...
    Tara Ann likes this.
  5. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 16,926

    yea i was going to disagree with you until i finished reading it.
    Lots of people DO write that stuff off and it's 'technically' illegal the way they do it, but theres no REAL way to police it.
    What? Im getting an audit? Move the clothes out of the closet... that kind of thing.
    But if they get RID of it all together..ok then.
    The REASON why theyre bothering is because of business moving to the internet, Store fronts disappearing; and with it their tax base.
    If more and more people didnt keep cheating, they wouldnt bother to change to rules. So they all only have themselves to blame.
    weeze likes this.
  6. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 16,926

    here's the key phrase:
    We anticipate this area of tax reform will be heavily scrutinized by the IRS. It is important that your partners and employees properly enter and describe their activities....

    That right there, heavily scrutinized why?
    Because TONS of people were writing off stuff they had no business doing so.

    Johnny side job writing off meals? Really? They cant necessarily PROVE he's not wining and dining clients.... some people are really wooed by burger king you know!
    So they changed the rules.
    GRANTSKI likes this.
  7. EricC

    EricC LawnSite Senior Member
    Messages: 572

    when you're at home, you get a tax write off. When you move into commercial then local govt's tax you on everything you paid tax on when you bought it too :) It's all about money.
    grassmonkey0311 likes this.
  8. OP

    Charles Moderator, Friend, Angel
    Messages: 11,810

    I have been writing off a garage and a room set up as a office since I have been in business
  9. weeze

    weeze Banned
    Messages: 17,196

    now i know you have a hammer in your garage charles that you don't use for mowing lawns. o_O

    ...then again all you have to do is beat the hammer on your mower one time and then you can say it's used for business. :laugh:

    all of this stuff is a joke. you can bend and twist it anyway you want to and so can the people that make the tax laws.

    ...but yeah i think T is right. eventually they don't want anyone to own their own business where they work from home. they don't like that because they can't keep an eye on everything.
    Last edited: Mar 1, 2019
    hort101 and Charles like this.
  10. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 16,926

    which is why they removed the home "loop hole"

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