Can you live the same place you operate your online business?

Say, that you work in the house where you run your Ecommerce business. Are you then able to live in it aswell? And then have the rent go on the companies bill?

11 Answers

  • Anonymous
    1 month ago

    Yes, you can! As long as you have a place that can not disturb you during working and you must have a stable net connection. 

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  • 1 month ago

    For tax purposes - it is tricky. You can only claim the exact amount of space that is EXCLUSIVELY used by the business.

    For example - if you claim an office in your house, but you also use it to watch television after work, you cannot claim it at all.

  • Anonymous
    2 months ago

    Yes, I believe it's possible.

  • 2 months ago

    Of course you can live there. Home based businesses are just that--businesses that you operate from home. BUT--only the portion of your house payment that directly is related to running that business is deductible. You cannot deduct the entire amount. You would need to set aside an area where your business was conducted, then subtract that square footage from your total house square footage, find the percentage of how much it is, and use that percentage as your deduction. The same would go for the utilities.  Total utilities, minus the utilities for that area, equals the deduction. 

    All home-based businesses use the same methods. Even your personal car--you can use the mileage and upkeep ONLY for that portion of your car payment or car expenses that you use when running your business. 

    For mileage, you'll need records. For the other things, you can estimate.  Estimating too high might trigger an audit--so don't try to fudge the figures. 

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  • Anonymous
    2 months ago

    Yes, unless you raise chickens. You might want to live somewhere else at that point.

  • 2 months ago

    Yes...Yes...and no.  Spend an hour or two with an accountant and get help in setting this up properly because you do not want all of your income to go to fines and penalties.

  • 2 months ago

    Yes, but do your research only a portion of your bills can be used as business expenses.  You claim all, expect an audit and a big fat tax bill.

  • Eva
    Lv 7
    2 months ago

    Only the portion of the house devoted exclusively to your business can be deducted. Your personal living space cannot.  If you are in the US, you would have to use Form 8829 to figure out the portion of the home office expenses that can be deducted.

  • 2 months ago

    Yes, you can run an online business from the same place you live as long as it is truly online without foot traffic, manufacturing, or other similar things.  Then local laws and even your lease would come into play.

    No, you can't take 100% of your rent and designate it as a business expense.  You should consult a tax professional (which you should have if you're running your own business anyway).  You are able to deduct certain amounts and possibly charge the company rent, but only for designated work space (separate room for example) and not a multi-use space (dining room table, for example.)  How your company is incorporated (or not) and other factors come into play as well.  Again, a tax professional should be able to help.

  • 2 months ago

    Normally, yes.  As long as you don't have customers or vendors coming and going out of residence, you shouldn't have a problem.

    However, just having a business in your home does not make ALL of your rent a business expense.  A small portion may be considered a legitimate expense but never all of it.

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