Home office Deduction

Five Facts about the Home Office Deduction

Technology is making it easier than ever for people to operate a business out of their house, many taxpayers may be able to take a home office deduction when filing their federal tax return next year. Here are three important things to know about claiming 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,

2. Generally, the amount you can deduct depends on the percentage of your home that you 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.

3.Different rules apply to claiming the home office deduction if you are an employee. For example the use
   must be for your employer’s convenience not yours, and your employer does not rent the business portion
   of your home.

4.Starting in 2013 there is a simplified method available for claiming this deduction. Please contact us to see
   how this may relate to your tax situation.

Typical expenses used to determine this deduction may include;

Determining the home office deduction is a very complex, and may have significant impacts on preparing a tax return. A tax professional should be consulted in determining if you may take this deduction based on your specific situation

Berman Cook is providing the information on this web site for general guidance only. This general information is provided to represent a good faith effort to provide accurate and complete tax information. The information provided herein should not be used as a substitute for consultation with professional advisers. Every situation may be unique, please contact us to discuss your particular situation.