How to Compute Your Rent & Utilities for PPP Application
Welcome to TaxNoTuesday!!
Under the CARES Act, the PPP (Paycheck Protection Program) proceeds can also be used to your rent, utilities and mortgage interest. Only 25% or less should be used for non payroll cost in able for the loan amount to be forgiven.
In a rare move to simplify life for taxpayers, the IRS created a Simplified home office deduction.
You simply deduct $5 for every square foot of your home office. However, the deduction is capped at $1,500 per year; so it can only be used for offices up to 300 square feet.
On the other hand, if you think your home expenses are more than $1,500 you can use the Regular Method. You calculate your home office deduction by adding up the total actual expenses of main staining your home office for the year and multiplying it by the percentage of your home’s square footage used for business.
One more thing, you can use either the simplified method or the regular method each year, whichever gives you a higher deduction when you file your federal income tax return.
If you are TIRED & OVERWHELMED dealing with your books and taxes, WYCOTAX is here to help!
Free COVID-19 Relief PDF Download: https://www.wycotax.com/
WYCOTAX is an all year round, all-in-one, outsource company for your tax, payroll and bookkeeping needs.
Outsourcing your tax, payroll, bookkeeping and COVID-19 relief to WYCOTAX will give you more time and financial freedom. It helps you to see a clearer picture of your numbers that will guide you to monitor the performance of your business. Moreover, you will find more time to provide value for your clients. The more satisfied clients you have, the more referrals they will generate. Outsource TODAY!
Under the CARES Act, the PPP (Paycheck Protection Program) proceeds can also be used to your rent, utilities and mortgage interest. Only 25% or less should be used for non payroll cost in able for the loan amount to be forgiven.
In a rare move to simplify life for taxpayers, the IRS created a Simplified home office deduction.
You simply deduct $5 for every square foot of your home office. However, the deduction is capped at $1,500 per year; so it can only be used for offices up to 300 square feet.
On the other hand, if you think your home expenses are more than $1,500 you can use the Regular Method. You calculate your home office deduction by adding up the total actual expenses of main staining your home office for the year and multiplying it by the percentage of your home’s square footage used for business.
One more thing, you can use either the simplified method or the regular method each year, whichever gives you a higher deduction when you file your federal income tax return.
If you are TIRED & OVERWHELMED dealing with your books and taxes, WYCOTAX is here to help!
Free COVID-19 Relief PDF Download: https://www.wycotax.com/
WYCOTAX is an all year round, all-in-one, outsource company for your tax, payroll and bookkeeping needs.
Outsourcing your tax, payroll, bookkeeping and COVID-19 relief to WYCOTAX will give you more time and financial freedom. It helps you to see a clearer picture of your numbers that will guide you to monitor the performance of your business. Moreover, you will find more time to provide value for your clients. The more satisfied clients you have, the more referrals they will generate. Outsource TODAY!