AtBullock & Leslie Tax & Accounting, we’re your Melbourne CPA to help small businesses plan tax strategy. And that includes sole proprietors (also called solopreneurs!). One question our solopreneur clients often ask is regarding the home office deduction. We have two initial thoughts on that:

  1. We’re glad you asked. In all seriousness, solopreneurs are often smart, engaging, do-it-myself types who can tackle any subject and like engaging in all aspects of business. We know that’s why they’re successful in sole proprietorships. But knowing when to ask for help and when to engage the experts is an essential key to solopreneur success. And taxes are one place that should happen. So we’re glad you asked, because that signals trust in your CPA to do what they do best: plan your tax strategy.
  2. Do it! There’s a common belief that the home office deduction is simply too big of a red flag and that it may signal an audit. Part of working with a knowledgeable CPA, however, means that audits aren’t necessarily a threat: if you’ve legitimately used your home office for business, you can legitimately claim the home office deduction. That includes a portion of your mortgage proportionate to your home office square footage, and that includes a portion of your internet, telephone, electric, water, sewage, and property tax costs as well.

In any case, solopreneurs are wise to work with a CPA to plan a comprehensive tax strategy. At Bullock & Leslie Tax & Accounting we enjoy helping small businesses grow and we invite you to join our client family!