Frequently Asked Questions
【Koshida Accounting Firm Column Date:】
I run a business in Japan as a sole proprietor. Can I deduct part of my home rent and car expenses?
Yes, in some cases.
If your home or car is used for both business and personal purposes, you generally cannot treat the entire amount as a business expense. However, the portion reasonably attributable to business use may be deductible.
The important point is to use a reasonable basis for allocating the business and personal portions.