Can Virtual Office Space Offer Tax Relief?

The oft-dreaded April 15th tax deadline is right around the corner. If you are like many companies, you are getting your business receipts in order to hand over to your accountant.

OK, so what does a virtual office space have to do with your 2009 taxes?

Well, if you are running a bona fide business and use a virtual office space as part of your solution, you can deduct the monthly expense just as you would a cell phone or office supplies you use as part and parcel of your operations.

Let's say you are a sales organization. Your salesmen stay on the road most of the time and work from home the rest of the time. You come together once a quarter in a meeting room, but otherwise it's each man to his own home office. You use a virtual office so you can all share a common street address and an 800 phone number complete with a virtual receptionist.

We've already covered that you can write off your virtual office space costs on your returns, but there are other tax issues to consider.

For example, if your employees are using their own cars to travel from client site to client site, then they should keep track of that business-related mileage, along with tolls and parking costs. The employees can submit this to you for reimbursement and you can write this off on your taxes, along with your virtual office costs.

Of course, you should always seek the advice of your accountant on deductions. But virtual office space and related travel expenses are standard deductions for most small and large companies alike.

About Jennifer LeClaire

Jennifer LeClaire is a veteran business journalist, editor and new media entrepreneur with a strong niche in real estate and technology.