You can deduct several home costs as professional expenses when you use part of your home for your business. The deductible amount is calculated based on the percentage of your home's surface area dedicated to your professional activity.
Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.
This article covers what you can deduct, how to calculate the deductible surface area, the rules for complementary self-employed people, and where to enter the percentage in Accountable.
What can be deducted as professional expenses?
Your utility bills (water, gas, electricity, heating)
The interest on your mortgage loan, depending on the surface area allocated to your activity at home.
The entire furniture and decoration purchases, from plants to armchairs, of your workspace.
If you are a co-owner, you also deduct your housing costs based on your share of the property. Example: if you own 50% of your home and devote 10% of its surface area to your professional activity, you will deduct 10% of 50% of your interest and expenses.
🚨 Warning: If you are a tenant, you probably cannot deduct your rent.
Indeed, can be considered a business expense only a commercial lease specifying the portion of the rent dedicated to professional activities (and registered by the landlord here). When the property is used for professional purposes, your landlord will pay higher taxes on rental income. It is therefore doubtful that your landlord will agree.
How do you determine the deductible surface area of your home?
The safest option is to take your floor plan, your tape measure, and measure the space reserved for your office, your studio, or your workshop. Determine whether this space represents 5%, 10%, 15%… of your home and apply this same percentage to your expenses.
Be precise: in the event of a tax audit, the tax authorities may come to your home to verify whether your expenses correspond to reality.
In general, the tax authorities allow you to deduct a maximum of 15% of your home for business purposes. If you have any doubt, take out your tape measure and check.
How do you deduct your home as a complementary self-employed person?
As a complementary self-employed person, you deduct your housing costs in proportion to the surface area you devote to your complementary activity.
You teach yoga as a complementary activity and have converted part of the second floor of your home for this purpose, representing 20%? You deduct 20% of the interest on your mortgage and your expenses.
You are co-owner of the home for 40% of it? Then you apply this 20% to the 40% you own. In other words, you apply the following formula: 20% x (40% of charges and interest).
💡 There is no VAT on the interest on your mortgage loan or on your charges. Whether or not you are subject to VAT does not change the amount you deduct here.
Where do you enter the percentage of professional use in Accountable?
You just need to enter the percentage of professional use in the Professional use field directly on the expense.
From the app:
From the web:
Key takeaways
You can deduct utility bills, mortgage interest, and workspace furniture as professional expenses.
The deductible amount is based on the percentage of your home's surface area used for work.
Co-owners apply their ownership share on top of the professional use percentage.
The tax authorities generally accept a maximum of 15% of your home for business deductions.
In Accountable, enter the percentage in the Professional use field on the expense.
Need help? Chat with us or email support@accountable.eu, we're happy to help.