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Declaring part of rent as business expense

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  • 02-09-2005 5:52pm
    #1
    impr0v
    Registered Users Posts: 2,647 ✭✭✭


    Quick question:

    As a self-employed person, could one legitimately rent a 2 bed apartment and, while using one bedroom as an office, declare half the rent as a business expense?


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    #2
    Chipboard
    Closed Accounts Posts: 428 ✭✭Chipboard


    I can't give you a definitive but I would say yes. I know that if you run a business from your home you can charge the business rent. You have to be careful though cos part of your home can become classed as a commercial building and this would increase the amount of CGT you would pay on sale. I would say that you could charge it as a business expense as long as there wasn't a clause in the lease preventing you from subletting or excluding commercial tenants.

    Having said that you should probably ask an solicitor/accountant.


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    #3
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    impr0v wrote:
    Quick question:

    As a self-employed person, could one legitimately rent a 2 bed apartment and, while using one bedroom as an office, declare half the rent as a business expense?

    Am i right in saying that you currently rent your home??

    The most correct way of doing it IMO, get the square footage of the room( say 200) you use. Then get the square footage of the entire house/apartment(say 1000) you rent. Then divide 200 by 1000, which gives you 1/5. Take your monthly rent (say €1000) and multiply it by the 1/5 and you get €200 which is your business expense for rent per month.


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