| If you use a DEDICATED part of your home for your | | | | your home office must be for your employer's |
| home business, you may be able to deduct certain | | | | convenience, for example, if there is no place at your |
| expenses and costs. It doesn't matter if you are | | | | employer's office for you to work. |
| self-employed or working for someone else, the same | | | | Here are just a few of the expenses the IRS allows |
| rules apply. | | | | you to claim a percentage of for your home office: |
| Of course, the Internal Revenue Service has | | | | - Rent |
| requirements for these deductions and, generally, it is | | | | - Real Estate Taxes |
| easier to meet these requirements if you are | | | | - Deductible Mortgage Interest |
| self-employed as opposed to working for someone | | | | - Utilities |
| else from your home. | | | | - Insurance |
| Here are some of the requirements: | | | | - Depreciation |
| - The area must be used regularly and exclusively for | | | | - Painting |
| the purpose of your business, regularly for daycare, or | | | | - Repairs |
| for storage of inventory or product samples. Hence, | | | | The proportion you can deduct depends on the |
| your dining room table won't qualify! | | | | percentage of your home dedicated to your home |
| - The section of your home dedicated to your | | | | offce. Your deductions are limited if the income from |
| business must be your principal place of business, | | | | your business is less than your business expenses. |
| where you meet with your clients in the normal course | | | | If you are self-employed, use IRS Form 8829 to |
| of your business, or where you perform the | | | | calculate your deductions and report the amount on |
| administration and management duties of your | | | | Schedule C. |
| business. Billing your clients, ordering supplies, doing the | | | | If you are an employee, use the worksheet in IRS |
| bookkeeping, calling people to set up appointments, | | | | Publication 587, "Business Use of Your Home", to |
| forwarding orders or writing reports all qualify as | | | | figure your allowed expenses. These are then claimed |
| administrative duties if this is the only place you have | | | | as itemized deductions on Schedule A. All the forms |
| to do these things. | | | | you need can be found on the Internal Revenue |
| - In order to deduct the expenses of your home office | | | | Website. |
| if you are an employee working for someone else, | | | | |