What are the tax ramifications of an in-home business?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What are the tax ramifications of an in-home business?
I’m a certified personal trainer and own a small personal training business that I operate from home. When I started the business I had an unfinished basement and decided to utilize the space to train my clients. I hired a contractor who finished the basement’ it cost me $48,000 in labor and materials and I spent an additional $6,000 in gym equipment. About 45% of the basement is utilized for running the business. I have a couple questions. Is any of that tax deductible? Also, am I required to submit a 1099 to the contractor for the cost of the project?
Asked on October 4, 2013 under Business Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
Based upon what you have written about a portion of what you spent is deductible as a business expense on your taxes and you would be required to submit a 1099 to the contractor for work that he or she did on your property.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.