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If I own the property in which I run my business can its rent value be considered a running cost?

Since I'm losing possible rent income by using the property myself, should the rent value be considered a running cost from an accounting point of view?
This is an interesting question and one that small business owners frequently ask. Unfortunately, you cannot claim a tax deduction for the potential lost rental income or what can best be characterized as an opportunity cost.

Similarly, the IRS states in the Internal Revenue Code that lost rental income while a property is vacant is not tax deductible. So, it is just an opportunity cost in economic terms but that is about it.

If you are wondering what you can deduct, these are some of the common tax deductible business expenses: real estate taxes, qualified mortgage insurance premiums, deductible mortgage interest, casualty loss, utilities, insurance, depreciation, security system, repairs.

Good luck with your small business venture and let us know if you have any additional questions.

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