Understanding Expense Deductions: Key Insights from FM NACK5
On August 24, 2026, the popular FM NACK5 program "Kirasuta" featured tax lawyer Katsuya Watanabe, shedding light on the pressing question of what qualifies as a deductible expense. Due to public interest, the key points discussed during the show have been compiled and summarized, ensuring that listeners who missed the live broadcast can still benefit from its content.
Key Themes Discussed
1. Can Cafe Expenses Be Deducted?
Question: "I had a meeting at a cafe. Can I deduct that expense?"
Answer: "It depends."
Taxpayers may consider cafe expenses as meeting costs or business entertainment if they are related to client discussions. However, expenses incurred for personal activities, like solitary reading, would be challenging to justify as business expenses. The main criterion is whether you can substantiate its connection to your work. Keeping a record of the cafe's name and the purpose of the meeting can help demonstrate this connection.
2. What About Home Rent as a Deduction?
Question: "I work from home. Can I deduct my rent fully?"
Answer: "Not entirely; partial deductions may be possible."
For instance, if 20% of your home serves as your office space, you can proportionally claim expenses for rent, utilities, and internet. This method is known as "apportionment of personal and business use." Claiming 100% of the rent for business use may prompt scrutiny from tax authorities, so it is vital to justify the percentage based on actual usage.
3. Are Lost Receipts a Problem for Deductions?
Question: "If I've lost my receipt, can I still claim the expense?"
Answer: "Not always, but it may still be possible."
Even without a receipt, if you have documented details such as date, amount, and purpose in an expense ledger, it might still qualify as a deductible expense. Collecting additional evidence, such as credit card statements or bank transfer records, is advisable to substantiate the validity of the expense.
Note: The tax information provided is generalized and may vary based on individual circumstances. For specific advice regarding tax filings and expense claims, consulting with a qualified tax professional is recommended.
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