Do I Qualify for Home Office Deductions?

home office deductionsWorking from home has become more and more common, and people who operate businesses from their home can deduct certain expenses, such as insurance, repairs, utilities, and depreciation. However, if you plan to deduct these expenses, you need to be careful. The IRS has set rigid requirements to prevent the abuse of home office deductions.

Here are some of the requirements to be able to qualify for home office deductions:

–          Your home must be used in connection with a trade or business
–          You must be an employee –or-  use the office space regularly and exclusively

If you are an employee:

–          You must work at home for the convenience of your employers
–          You must NOT rent part of your home used for business to your employer
–          You must use the office regularly and exclusively

Additionally, you must meet one of the following:

–          The home is your principle place of business
–          You meet patients, clients, or customers in your home
–          The business part of your home is a separate structure

If you have questions about home office deductions or are interested in starting a business from home, contact Boyer Law Firm’s business law attorneys today.

Print Friendly, PDF & Email