Virtual is the New Home Office
The majority of small businesses are based at home, according to the U.S. Department of the Treasury. As such, most all of these businesses enjoy a tax write off deduction. That is, if they can figure out how to calculate the square footage. If you're like me, you work in many rooms. I take my laptop into the den, the kitchen and the living room. In fact, the only room I don't use for business is the bathroom - but I understand that some people do that as well. Ewwww!
When home offices first came on the scene, home computers were all desktops as far as I know. So you usually weren't going to be working all over the house. But what if you use the room for other stuff? What if you can only dedicate your kitchen table? Or how about if you only have a living room corner to spare? All of those scenarios make it difficult, if not impossible to write off home business space.
As usual, the IRS made it so complicated to calculate the square footage that a lot of people were bullied into not even bothering to try to take the deduction. I guess they were terrified that someone from the IRS would show up on their doorstep demanding to see the space. So people were too scared to take a perfectly legal and much needed tax deduction.
Thankfully, business owners using virtual offices are able to write those expenses off without needlessly confusing square footage calculations. From around $40 on the low end in many major U.S. cities, anyone can get virtual offices that include a real business address and the ability to book rooms there when you need them, too.
Thanks in part to technology, the days of bullying new businesses into not taking their deductions are a thing of the past. When you use a virtual office, that issue is solved. So you can write off the entire cost of all of the services you get because you are using them strictly to run your business. Take that, IRS!