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.

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With more and more people working remotely, a common question clients asked this past tax season was whether they are eligible to take the home office deduction. This is also referred to as business use of home.

Keeping Your Balance: Home office deduction

Other questions address the income and deductions, including methods used for auto expenses and the home office deduction. A profitable Schedule C business may also be a good place to address self-employment tax questions.

Flip the tax return with a professor-prepared tax return

A partial list of those who are not eligible for tax services includes individuals who receive income from rental property; have Form 1099-A (Acquisition or Abandonment of Secured Property); Form 1099-C (Cancellation of Debt) for discharged debt other than credit card (Box 4); taxpayers wishing to claim the Home Office Deduction; taxpayers whose business produces a loss.

Free program offers help preparing your taxes

* Home office deduction. If the home is the principal place of business, or there is no other fixed location for the person and space in the home is used to do administrative work (e.g., keep books and records, do research, schedule appointments), then the worker may be eligible for a home office deduction.

Financial Planning for Workers in the Gig Economy

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.

Every Landlord's Tax Deduction Guide, 13th edition

The home office deduction under the actual or simplified method can't be used to create a net loss for the business.

The simplified home office deduction: there's an alternative method for calculating the home office deduction that simplifies the process for taxpayers

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.

Turn Tax Refund Into Profits by Purchasing CruiseOne[R]Travel Franchise

Congress has relaxed the rules, so a home office deduction is no longer a red flag, he says.

The tax man cometh

Among the other changes for 2013, taxpayers who work at home will now have a simplified option for taking a home office deduction.

New tax law will whack some filers