The Home Office Tax Deduction for Realtors and Small Business Owners

Рет қаралды 5,196

Күн бұрын

This video is for Real Estate Agents, Realtors, Brokers and other small business owners who want to learn more about the home office deduction. I discuss if the home office deduction is a red flag for an audit, what guidelines you need to meet, and how much of a deduction you can expect to obtain.
Take what you learn from this video and ask your legal or tax professional all of your specific questions. If you want to contact me, my information is below.
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This video was created for informational purposes and it is not to be construed as legal and tax advice specific to your unique situation.
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Пікірлер: 27

@tssafarina1 Жыл бұрын

Thanks. Great video. I'm also a CPA but normally only work on multi national corps. This is very helpful to hear how small entities work.

@NaviMarajCPA Жыл бұрын

Glad it was helpful!

@TheSigmaDadLife 3 жыл бұрын

Awesome content!

@NaviMarajCPA 3 жыл бұрын

Thanks @Muscular Style! Glad you’re enjoying it!

@akashp5 3 жыл бұрын

Please upload more videos!! do one online retail/amazon business.

@NaviMarajCPA 3 жыл бұрын

Will do...the next video will be discussing the auto deduction and I will try to upload it within a few days. Also, so far, all these strategies also apply to an online retail/Amazon FBA business. For home office, if you use a garage or another room for storage of inventory you may be able to add that square footage as well when calculating the home office deduction.

@ranjitsandhu4918 3 жыл бұрын

Thanks for the video. Can you explore more for Real estate brokerage? Is it better to have LLC or Sole? I know you have a video for that but can you do more please. Thanks!!!

@NaviMarajCPA 3 жыл бұрын

Hi Ranjit...I responded to you in another comment section. There is not a one size fits all answer - sometimes the state's real estate commission has requirements and other times the State itself has legal requirements that will impact the answer to your question.

@fallin4271 2 жыл бұрын

Thank you sharing. My question is if I own my house can I use this Home depreciation ? Because my PA said no it’s only allowed for renters.

@shawnalewis1946 2 жыл бұрын

Hi Navi! Thank you so much for your content. Quick question... If you are licensed in more than one state and have a home office in each and also pay for office space in all of these places, are you able to write all of it off?

@carlosw.arriaga7015 Жыл бұрын

Hi Navi if you use home office deductions what happens when you sell the property ( the portion every year lets say 15% )

@NaviMarajCPA Жыл бұрын

You’ll have to pay taxes on the portion that you took as depreciation expense. This is called depreciation recapture.

@carlosw.arriaga7015 Жыл бұрын

Makes sense thank u

@jessicac2377 3 жыл бұрын

Hi I’m new to becoming a real estate and also still a w-2. It’s also a new year,what advice do you have for me? What are consider tax deductions? Is there a list? Can I buy supplies now and still deducted them? ( I haven’t stated yet but will soon)

@NaviMarajCPA 3 жыл бұрын

Hi Jessica! I can’t answer all those questions here but my honest and objective feedback is to watch the videos on my channel. Start with the business plan video to make sure you have a plan for 2021 to hit your commission goals. I also have a playlist regarding maximizing your deductions you should watch. If you buy supplies in 2021 and you have a sale (revenue) in 2021, you can write off those supplies. I’ll try to create a video on startup costs to explain how that works. Thanks for watching!

@jackwebb5917 3 жыл бұрын

I’m a realtor and use one bedroom as my office. Question is this, in the same room I have a reloading bench. Can I write off the office work area of the room as long as I don’t count the square footage taken up by the reloading bench?

@NaviMarajCPA 3 жыл бұрын

@Jack Webb you should be fine doing that (excluding the area with the reloading bench). Thanks for watching!

@nicholasyacoub795 Жыл бұрын

If I have a home office, and my wife has a separate home office, can we get the deduction twice filing together?

@NaviMarajCPA Жыл бұрын

Sort of. Need more info to answer your question properly but the short answer is you can deduct the percentage of your residence used for business as home office.

@nicholasyacoub795 Жыл бұрын

@@NaviMarajCPA got it. Same deduction but add the square footage from both.

@efficiencygeek 2 жыл бұрын

If I use the Standard Method and don't include depreciation, will I have to include Deprecation Recapture when I sell the house, even if I did not use depreciation in the standard home office deduction? Thanks for the videos Navi.

@NaviMarajCPA 2 жыл бұрын

You’re welcome. If you’re taxed as a sole proprietor, yes, that is how it works. If you’re taxed as an S Corp, there is some flexibility on how this works but it’s too much to explain here.

@efficiencygeek 2 жыл бұрын

@@NaviMarajCPA Thanks! Funny that I got your reply while I was watching your other videos. :-)

@theouvina-varelateam1863 Жыл бұрын

Hi Navy, let me begin by saying that you share great videos!! I have a question for you. My wife and I are Realtors in the Miami area, we have two desks and printer table in a corner of our own master bedroom. We work everyday out of those desks and this is our main place of business. Can we report that space as a Home Office and get reimbursed through the accountable plan?? Thank you in advance! Gustavo

@chanakyabharadwaj9235 5 ай бұрын

Only if the house is rented, not owned by you.

@junepark1005 3 жыл бұрын

can you write off home office deduction when you are living with your parents and renting the 2nd floor of the house?

@NaviMarajCPA 3 жыл бұрын

If you're actually paying them rent, then yes. Calculate the percentage of your "apartment" that you use for your business and multiply that by the amount you pay for rent.