Business vs personal expenses
How to handle mixed-use expenses
Business vs Personal Expenses
Many expenses are partly business and partly personal. Here's how to handle them:
The Rule
Only the business portion of an expense is tax-deductible. The personal portion is not.
Common Mixed-Use Expenses
Home Internet
If you work from home:
Estimate work hours vs total usage40 hours work / 80 hours total = 50% businessDeduct 50% of monthly billMobile Phone
Separate work calls/data from personalMany use 40-60% business estimateOr track actual work usage for a monthVehicle
If you use your car for work:
Track business kilometers drivenFuel, maintenance, insurance proportioned accordinglyKeep a mileage logHome Office
If you have a dedicated workspace:
Calculate percentage of home used for workApply to rent, electricity, etc.Must be exclusively used for workHow KeepAm Handles This
When adding an expense:
Enter the total amountSet the business percentageKeepAm calculates the deductible amountExample:
Internet bill: ₦15,000Business use: 60%Deductible: ₦9,000Documentation Tips
Be consistent - Use the same percentages monthlyBe reasonable - Auditors flag 100% claims on shared itemsKeep evidence - Bills, usage logs, home office photosReview annually - Work patterns may changeRed Flags to Avoid
Don't claim:
100% of internet if you stream movies at home100% of phone if you have personal callsFull rent as "home office" expensePersonal travel as "business trip"When in Doubt
If you're unsure:
Err on the conservative sideDocument your reasoningConsult a tax professional for large itemsDidn't find what you need?
Our support team is ready to help you.
Contact Support