[SL] Re: Setting up accounts for business use of home.
- From: Richard Lyons <richard@xxxxxxxxxxxxx>
- To: sql-ledger-users@xxxxxxxxxxxxxx
- Date: Fri, 9 May 2003 19:14:04 +0100
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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