Home Office Expenses
The home office expense deduction is complicated. The IRS has a 32-page book (Publication 587) that discusses this subject. This article presents a brief overview of the subject. If you have a home-based business, check with your tax advisor about the home business deduction.
You may deduct expenses of a home office is you use your home "regularly and exclusively" for the following purposes:
- as your principal place of business
- as a place to meet patients, clients, or customers "in the normal course of your trade or business."
- casualty losses (with limits
- mortgage interest
- real estate taxes
- homeowner's insurance
- and home depreciation
If you are self-employed, you can then report this deduction on Line 30 of your Schedule C on your 1040.
Back to Taxes and Your Home Business
This article presents general information; I am not a tax attorney or tax preparation specialist. Refer to IRS publications and refer questions to your tax consultant.