Home Office Deduction

Home Office Deduction

A reduction in one's taxable income for the expenses of maintaining a home office. For example, a self-employed person may deduct the costs of office supplies, depreciation on one's computer and similar expenses. Likewise, one may deduct a portion of one's rent or mortgage for an office space used exclusively for business purposes. However, the amount deducted must be proportionate to the office's size relative to the home. Employees who work from home are eligible for the same deduction under the same restrictions.
References in periodicals archive ?
The Home Office Deduction is often overlooked by small business owners.
Chapters walk the reader through how to deduct operating expenses, the basics of depreciation, the home office deduction, hiring help, casualty and theft losses, necessary record-keeping systems, and much more.
If you're freelance or self-employed and work from home, the home office deduction could save you some money on your taxes.
This article covers recent developments in the area of individual taxation, including cancellation-of-debt (COD) income; a hobby loss case where the taxpayer prevailed with the IRS, but not with the state taxing authority; theft and casualty losses; and a number of home office deduction cases.
The home office deduction under the actual or simplified method can't be used to create a net loss for the business.
You may be able to claim a home office deduction, as long as you use part of your home exclusively for conducting business.
Benefits include the potential ability to expense the cost of equipment purchases, business travel, certain educational expenses and claiming a home office deduction for a home-based business franchise.
Congress has relaxed the rules, so a home office deduction is no longer a red flag, he says.
In other changes for the 2013 tax year, the Alternative Minimum Tax has been patched -- permanently -- to prevent more middle-income people from being drawn in, and there's a simpler way to compute the home office deduction.
An analysis of the home office deduction safe harbor.
are home-based, and many of them claim a home office deduction on their tax returns.
Be sure to make your claim reasonable, or it will get questioned; a $25,000 home office deduction for a business with $50,000 annual gross revenue is not reasonable.

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