>Do you run your business out of the home? If so, you can deduct up to 25% of house expenses (taxes, utilities, etc) unless that's been taken away.
>
>No, it has not been taken away, but we only deduct 1/7 of the expenses - 7 rooms not counting the bathrooms - because that was how my accountant told me to do it. It must have been a good idea because we have never been audited and home office deductions are a red flag to the IRS.

Notice I said "Up to 25%".

>
>And, as an 'S' corporation, you're already deducting business expenses from your total income, are you not?
>
>Yes. Of course. However, as you said, they are BUSINESS expenses - not personal ones <s>. If I worked for someone else full time, I wouldn't be paying any of those expenses - like $1500 per month for our health insurance. Also, since we both drive company cars, we get taxed on our personal use of them.
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>**Not trying to be provacative, just asking**
>
>I didn't think that you were trying to be provocative <s>.

But, again, it's deducted from your personal income. Yeah, back when my family ran a dog business I got handed the corporation books because I was working a degree in Math. Gotta love the fake math of accounting.