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Home-Office Tax Deductions
Home » Home Office » Blog » Home-Office Tax DeductionsEssential to the self-employed or employee who uses his or her home for business is deducting associated costs from taxes.
The requirements for home office deductions are as follows: Your home-office must be used regularly (and exclusively) for your business needs. Secondly, the business part of your home must be the principal place of business in which you deal with clients or customers.
Such things as billing operations, keeping books and records, ordering supplies or setting up appointments qualify as administrative duties. The IRS cautions that your home location must be the only place where you can fulfill these responsibilities.
If you meet the requirements to claim a home office, some expenses can be deducted from your portion of real estate taxes, deductible mortgage interest, rent, utilities, insurance, depreciation, and painting/repairs. The total amount you can deduct depends on the % of your home used for business. Your deduction will be limited if your income from your business is less than all your business expenses combined.
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