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Looking for some clarification on "personal use" for a Home Office declaration. When I look at the information bubble for Home Office it says space that isn't used for personal use. I'm running an IT business and do some of my work from my home. As it is IT work I do the work from a computer that was purchased for the business, but I do the work at the same desk/area where I have my personal computer. So, it would seem that I cannot declare a Home Office, unless I set my business computer up in a different room and only go in there to do business work.
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Thanks for clarifying, @BryanS1. Based on the article from IRS guidelines, the space should be used exclusively for business only. Hence, you can't claim it as a home office if you're also using it for personal use.
You can check this information under Requirements to claim the home office deduction section outlined in this article: Requirements to Claim the Home Office Deduction.
I'd also suggest you visit and post this concern on the Answerxchange Community page to interact with tax experts and accountants to confirm this matter.
Feel free to get back to us here if you have other questions. I'll always be around to help you some more.
I'm here to clarify things out about categorizing the computer for the business, BryanS1.
In QuickBooks Online, we don't mix personal with business transactions. If you've bought the computer and want the business to reimburse it, you can set up a fixed asset account.
Let me show you how:
If you need to calculate your asset’s depreciation, we recommend you to work with your accountant who knows the best methods. You may also want to check the Chart of accounts to learn what each account is for and what it does.
After setting up the fixed asset account, you can write an expense to record the purchase. Then, categorize it using the account you've created above to track the transaction.
If you're using QuickBooks Self-Employed (QBSE), entries categorized under Personal aren't calculated for estimated taxes. If you need to include this expense and report on the Schedule C form, you can categorize it under Other business expenses.
You can browse this link to learn more about categorizing entries in QBSE: Schedule C and expense categories.
Also, you have the option to split a single transaction. It still depends on your business need. Check out this link on how it works: Split transactions in QuickBooks Self-Employed.
Stay in touch with me if there's anything else I can help you with categorizing your purchases in QuickBooks. I'll be right here whenever you need additional information about this.
Sorry, guess I wasn't clear. My question centered around the declaration of using a room (sq ft) for my business. I have a room that I was using as my "office" before I started my business. Now that I've started my business, I am doing my "office" work for the business in the same room/space. So, can I use that room/space as my business deduction for an office?
Thanks for clarifying, @BryanS1. Based on the article from IRS guidelines, the space should be used exclusively for business only. Hence, you can't claim it as a home office if you're also using it for personal use.
You can check this information under Requirements to claim the home office deduction section outlined in this article: Requirements to Claim the Home Office Deduction.
I'd also suggest you visit and post this concern on the Answerxchange Community page to interact with tax experts and accountants to confirm this matter.
Feel free to get back to us here if you have other questions. I'll always be around to help you some more.
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