| Running a home office is never an easy task, and | | | | time you have worked in the office. Offices that are |
| many people are happy to find out that they can use | | | | not a part of one's home, but that are detached in |
| their home office as a tax deduction. Often times, | | | | some way are considered "exclusive" and more |
| however, they are unsure of what requirements must | | | | readily qualify for the deduction. |
| be met in order to do this. This article will explain if and | | | | There are also rules about what exactly is tax |
| how your home office qualifies for a tax deduction. | | | | deductible. You may deduct real estate tax, utilities, |
| In order to qualify for the deduction, you must be able | | | | depreciation, mortgage interest, and general operating |
| to prove to the IRS that your office is used exclusively | | | | expenses that relate to your home office, but you |
| and regularly as your "principal place of business," or as | | | | cannot deduct all of these expenses. Instead, you are |
| the place where you meet with patients, clients, or | | | | required to allocate the expenses on the business and |
| customers for business. | | | | personal sections of the tax forms. If you require help |
| You must be able to show that you spend most of | | | | in doing this, seek out the advice of a professional. |
| your working hours in your office and that most of | | | | Also, be sure to never provide false or misleading |
| your income comes from activities performed in the | | | | information on a tax return. You may think it is saving |
| home office. If this is the case, be sure to have tax | | | | you money, but, in the long run, doing so can get you |
| records of the work or activities performed in the | | | | into both legal and financial trouble. |
| home office and that you are aware of how much | | | | |