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Finding tax deductions before year's end

Brought to you by Annette Saarinen, AccounTax of Oregon - Accounting Insider -

ACCOUNTAX OF OREGON - Annette SaarinenWith the end of the year fast approaching, it’s time to think about deductions!

Are you self-employed?

Last month, we covered three categories of business deductions for self-employed persons: auto expenses, meals and entertainment and travel: www.pamplinmedia.com/ttt-insiders/330640-210507-self-employed-document-those-deductions

This time, let’s look at deductions for having an office in your home.

An office in your home MUST be used regularly and exclusively for business. The deduction, Safe Harbor, requires measuring the square feet of the office portion against the total square foot of the home.

Indirect expenses such as rent, utilities, insurance, deductible mortgage interest, and property tax can be deducted at the business-use percentage rate.

The Safe Harbor deduction calculation is $5 per square foot of office space, limit 300 square feet. This usually isn’t as much as the actual costs, but it does save some taxpayer time in gathering the information.

As far as deductions for your personal taxes, don’t forget to clean out your closets, attic and basement of items you no longer use.

Keep a list of what was given with Fair Market Value. Make sure it is an approved charitable organization. Keep each receipt of donation and list for us to review.

Oregon Department of Justice is not allowing charitable deductions to organizations which haven’t fulfilled their charitable goals. To find your desired charity, check justice.oregon.gov/Charities

Best wishes for a happy Thanksgiving from all of us here at AccounTax!

Accountax of Oregon

8050 SW Pffafle St., Suite 110

Tigard, OR 97223