Work at Home? You May Qualify for the Home Office Deduction
If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The IRS has the following six requirements to help you determine if you qualify for the home office deduction.
1. Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly:
• as your principal place of business, or
• as a place to meet or deal with patients, clients or customers in the normal course of your business, or
• in any connection with your trade or business where the business portion of your home is a separate structure not attached to your home.
2. For certain storage use, rental use or daycare-facility use, you are required to use the property regularly but not exclusively.
3. Generally, the amount you can deduct depends on the percentage of your home used for business. Your deduction for certain expenses will be limited if your gross income from your business is less than your total business expenses.
4. There are special rules for qualified daycare providers and for persons storing business inventory or product samples.
5. If you are self-employed, use Form 8829, Expenses for Business Use of Your Home to figure your home office deduction and report those deductions on Form 1040 Schedule C, Profit or Loss From Business.
6. If you are an employee, additional rules apply for claiming the home office deduction. For example, the regular and exclusive business use must be for the convenience of your employer.
Thank you a bunch for sharing this with all folks you really realize what you’re speaking about! Bookmarked. Kindly additionally consult with my web site =). We can have a hyperlink alternate agreement among us
I was suggested this web site via my cousin. I am not sure whether or not this publish is written by means of him as no one else understand such specified about my difficulty. You are amazing! Thanks!
I take pleasure in, cause I discovered exactly what I used to be looking for. You’ve ended my four day long hunt! God Bless you man. Have a nice day. Bye
Hi. I found your blog is very useful for me because of msn using. You article is really well written and I’m sure that I will back to read them more. Thanks for sharing. Now I bookmark your web for my return.