Is House Cleaning Tax-deductible?
Cleaning your house can be a time-consuming task that many homeowners decide to outsource through house cleaning services in Menlo Park. But are these costs tax-deductible?
Hiring someone to clean your house can be an expensive proposition, but if you qualify as self-employed, you may be able to deduct the cost of your house cleaning services. In order to deduct this business expense on your tax return, you’ll need to itemize your deductions and meet certain requirements. Let’s look at how you can deduct the cost of having your home cleaned, as well as what kind of things you can’t claim as deductions on your taxes.
Yes, If You Use a Professional Cleaning Service
If you use professional cleaning services in Menlo Park to keep your home spic and span, then your housecleaning expenses are likely deductible under business tax deduction for home office cleaning. In order to qualify as a deductible expense, an item or service must be both ordinary and necessary. An ordinary expense is one that’s common and accepted in your trade or business. A necessary expense is one that’s helpful and appropriate for your business. These factors help determine whether or not a particular cleaning expense is allowed as a deduction under tax law.
No, If You Use Your Own Supplies
House cleaning services are not tax-deductible when you do it on your own or use your own supplies for cleaning. However, if you hire a house cleaning in Palo Alto and pay them directly, those payments may be deductible as home office expenses. The IRS allows homeowners to deduct expenses for business use of their homes if they meet certain criteria, including that they use part of their home exclusively for business purposes. If your primary workspace is your kitchen table or living room couch, it’s unlikely that you’ll qualify.
However, you can get a tax deduction for the cleaning supplies such as cleaning solutions, brooms, sponges, spray bottles, and more that you buy from your cleaning business to clean your office. It’s crucial to maintain a division between the materials used for your business and those used for your home. Those latter items are categorized as personal expenses.
How to Deduct Them on Your Taxes?
House cleaning service expenses are not deductible for income tax purposes because your home does not qualify as a business location. In order to claim deductions for business-related expenses, you must use your home exclusively and regularly for business purposes, and it must be your principal place of business. You do not meet these requirements if you use a room in your home that can also be used for personal or family activities.
How Much Cleaning Expense is Tax-Deductible?
There are various costs you can subtract from your taxes as a business owner, including phone expenses, office equipment, depreciation, security systems, utilities, office supplies, insurance, cleaning services, and others. Whatever percentage of your home you use exclusively for business purposes, that percentage of costs is tax-deductible. The typical cost of routine maintenance and Mountain View cleaning services at your home office is covered. However, you should consult your tax accountant for expert advice.