officepres
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The conventional treatment is to account for your expenses in your accounting system and then separately add back the personal element of expenses incurred to arrive at your tax-assessable income.
As T McGibney says and there is a box for that on the Form 11.
A more important issue that may arise in working from home, is does it then become a business premises, are you liable for rates and is the CGT exemption affected.
thanksApportioning domestic expenses isn't an issue at all in terms of PPR relief on your home etc; the key is that the area isn't used exclusively for business.
I'm surprised to hear any issue with this. I've been working from home for 10 years now and I'm pretty sure I would have left no stone upturned to make sure there was no issue with me working from home when I started. I definitely consulted 2 separate accountants about it I know that for a fact, and actually a lot of my clients work from home and I never heard of either of these being issues ... do you have any reason to suspect these ... and/or are they new rules. All I could find on revenue.ie about it was regarding employees working from home. I never heard of any restriction or impact on self employed people using their home as their place of business. Surely this would be a crazy area for the government to mess with ... I mean farmers, B&B's, Public houses, restaurants, hairdressers, artists, painters and decorators, little old ladies baking apple tarts for the farmers markets ... surely I would have heard something about it?
Apportioning domestic expenses isn't an issue at all in terms of PPR relief on your home etc; the key is that the area isn't used exclusively for business.
How can you suggest that I was definitive
I decided not to respond until I had something more definite than my own general knowledge to contribute.
While I don't think either source answers the question authoritatively, both support the idea that a home worker, who does not have an other place of business is liable for rates. As to the loss of CGT exemption on the sale of the property I think that goes together with the rates question.
What exactly is your point?
If he sets up an office in part of his home and uses that exclusively for business purposes, then he loses (pro-rata) the PPR exemption from CGT on the sale of the home.
As Gordon says the key is to ensure that there is at least some personal use of that space. It's not a particularly difficult requirement to satisfy.
This question has nothing whatsoever to do with rates assessments.
Send them off to play in the filing area too and you should be ok.Can you explain how the requirement with regard to exclusive use is satisfied. In my own case, the room I use as an office to run my business is also used for studying by the children. The filing space however has no other function.
This is an internet site, not a platform for definitive advice. I don't claim anything I say here is infallible but it should help.However it is good to understand the correct legal position as well.
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