Home Office Rules - Do you Qualify

Posted by Andy
The Home Office deduction is becoming more and more popular these days with new work situations and more people turning to self-employment.

To see if you qualify for the home office deduction, here are the IRS guideline.

Part of your home must be used exclusively and regularly as either:
  • your principal place of business (if you work from home, this one is usually easy to accomplish) or
  • a place that you meet your customers, clients or patients as a part of your normal course of business or
  • you have a separate structure that you use in connection with your business.
If you're an employee you must also work from home for your EMPLOYER'S convenience, not yours.

Your deduction is limited to income from your business (any excess is carried forward).

The allocation percentage is based on the square footage of your office space to the square footage of your entire home.

The kinds of expenses you can deduct would be mortgage interest, property taxes, HOA dues, utilities, pest control, home insurance, and maintenance and repairs on your home.

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