[SL] Re: Setting up accounts for business use of home.

On Friday 02 May 2003 16:40, Mark J. Small wrote:
[...]
> business use of home expenses.
>
> I am able to write off a certain percentage of my power, heat,
> mortgage interest, etc at tax time.  So I was thinking that I would
> just enter that percentage of the expense in to my accounts and be
> done with it. However, the actual tax form needs the full value
> spent 
[...]

It's a matter of personal choice really, but I would enter the whole 
amount in a purchase ledger transaction, splitting it already at the 
time of purchase into 20/80 or whatever percentage, setting the 
business use against the appropriate category and the private use 
against an "owners capital" or similar account.  Then you can pay the 
whole thing, and the cheque or debit is the right amount to match the 
bank account.  All is transparent, and when that annoying little man 
from the tax authority decides to intimidate you, you can sip your 
coffe quietly and get on with something else while he shuffles so 
expertly through your printouts, because the audit trail shows 
exactly what you did.

-- 
richard

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