only the business portion of qualified residential interest and property taxes are deductible without limitation. after deducting these expenses from business net income, other expenses are only deductible to the extent of remaining profit.
be care full of the column - direct expenses vs indirect expenses
Direct expenses benefit only the business part of your home. They include painting or repairs made to the specific area or rooms used for business. Enter 100% of your direct expenses on the appropriate line in column (a). Indirect expenses are for keeping up and running your entire home. They benefit both the business and personal parts of your home. Generally, enter 100% of your indirect expenses on the appropriate line in column (b). this would include mortgage interest, taxes and most other expenses like utilities and general repairs
only the business portion of qualified residential interest and property taxes are deductible without limitation. after deducting these expenses from business net income, other HO expenses are only deductible to the extent of remaining profit.
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