Would you like to start a business from your rental property? In some cases this is allowed and you can even deduct certain costs of the tax. And what about running a business from home, is that allowed? Yes, that is legally allowed, provided that your business does not take up the largest part of your house. Usually you should not exceed a third of your home, but check it with your municipality. Here you should also investigate the local home business rules regarding how much of your home you may use. Some companies do not carry out from home, such as a catering company. For other companies you do need a permit. A company that you run from a home office, such as a text or administrative office, usually makes it more likely. Read more at home business start?
If you want to start a company in a rental property, it is important to first check with your landlord if he allows it. Often there are rules on this subject included in the rental contract. Do you have a social housing, then the chances are small that it is allowed. Most social landlords, such as housing corporations, prohibit the conduct of an enterprise from home or connect to these conditions in the rental agreement or via the General rental conditions. The starting point is disruption to the environment and to ensure that living space according to its destination is used. Tip! Always ask permission when you have plans to start a business in a rental property first to the landlord to prevent disappointments.
Requirements for deductions
If you, your company performs in a rental house, then you have the right to deduct cost of tax in certain cases. This depends on a lot of factors. For example, if you rent according to the law of the Trust Enterprise workspace capacity or as private assets. Or that you administrative split the use of the home, but this is only possible in very exceptional cases and you should really use the work-space only for business. If you follow the stringent requirements for the administrative split of your property, you are entitled to deductions.
Change in income
Do you choose to include your work-space your private possessions, then you need follow these annual income requirements:
You have outside your own house another work-space: If you make 70 percent or more income from your work space at home, then you meet the income revenue requirements. If you have outside your home no work space: If you have 70 percent or more income on your work income in or from the home office deserves, and also your labor income of 30 percent or more in the home office (for example, if you organize and prepare the work inside the work-space to perform outside the work-space), then you also meet the requirement.
With ‘ labor income ‘ is meant the joint amount of wages, showing from other work and profit from the enterprise.
Independent work space
In some cases you need to meet the “independent work-space arrangement ‘. This means that your work-space is a self-contained portion of the house is; It should have a private entrance or entrance and bathroom fixtures. You can use the work-space that in principle also could be rented to a third party.
An easy way to calculate the deduction percentage can be found at the Dutch www.rekenvragen.nl . Calculate things like: do you use 10% of your home for your business, how much independent work-space, the percentage of the work space under private or corporate power and such, you’ll find out if you are eligible for deductions. The calculation tool offers a first indication, in many cases, your situation is even being looked at and is it smart to get advice from, for example, your accountant and after you calculated all percentages.
If you’re having like many people difficulties calculating percentages, then I can recommend a Dutch website with the following phrase” hoe bereken je procenten uit zonder rekenmachine “.
If you meet all requirements to deduct the cost of work space, then calculate the percentage of those costs, feel free to use the Dutch ” hoe reken je procenten uit je hoofd “.
Determine what percentage of the monthly costs are for your home, and what part of your work space. Calculate the floor area. Does your work space take up a third part of your living space, then the cost is a third of the total. You can deduct this from the proceeds of the enterprise. If you also have paid VAT on these costs, you can deduct the VAT as input tax if you are entitled to. Do not forget also to write off the costs.