Self Employed House Purchase

BulliteShot

I'm self employed and work from home more than 12 hours a day.

If I purchase a small house, would I be able to put 50% of the house value as a business expense? (I say 50% for 12 hours a day)

It seems doubtful to me, but I thought there would be no harm in asking. In this economy, everything helps.

Thanks all

Nidot

No as you personnally would still own the property - thats the legal reason for this not being allowed under taxation legislation.

BulliteShot

Understood, thanks

mari2222

Also, beware of losing PPR tax relief if you sell on the part that is "business"

BulliteShot

If I use 1 room dedicated to work, would that count? How do I determine the percentage?

mari2222

There might be some guidance on the revenue.ie website - I would guess that if you use one room (out of say 5 "daytime" rooms) you could apportion 20% of expenses to it (like heat/light), but the non-PPR bit would be smaller for any capital gains calculation, as it might be only 10% of the total area.

It is not something to rush into, as your home insurance will probably go up, and you may need public liability insurance if clients come to your home for business.

You need to weigh up the advantages (no rent) versus potential costs.

BulliteShot

Thanks for the reply.

It's always a mission for me to find anything on the revenue site. I usually have to google what I'm looking for to get the link to the right page.
If anyone could point me in the right direction, I'd be very grateful.

Insurance would not be an issue, because my office would not be open to the public.