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Income Tax Blog > Tax Deductions > Home Office Tax Deduction
You May Be Able To Deduct A Number Of Expenses If You Are Operating A Business At Home
Running a business from home can help you lower your tax bill.
If you are operating a business at home you may be able to deduct some expenses from you Income tax return. These deductions are collectively referred to as "home office Tax deductions" or what the IRS calls the "business use of your home."
Here are some home office Tax deductions:
- Rent
- Depreciation
- Insurance
- Mortgage
- Real Estate Taxes
- Maintenance
- Utilities
- Casualty losses
- Repairs
- Home improvements if they relate to the part of the house you use for business
Today, thanks to new technology, it has been easier to work from home. Computer, fax, internet, and cellular phone have made it easier and more profitable to operate a home business but if you dont take advantage of all the available home office tax deductions you are litterally giving money away to Uncle Sam.
Who can claim home office tax deductions?
You can make home office tax deductions if you are self-employed of if you are an employee who meets special requirements.
If you use your garage to do mechanical repairs, or other things. the expenses related to the use of the garage may be treated as a home office expenses.
If you use you home for business, whether you own or rent,you may be able to deduct a portion of the costs of your home or rent.
Who is the home office deduction available to?
The home office deduction is available to renters and homeowners alike. according to the IRS, your home can be a your house, a condo, an apartment unit, a mobile home, even a boat, as long as you can cook and sleep there.
Requirements for home office tax deductions
Like the two requirements for home office tax deductions. if you want to modify for the home office deduction you must meet those two requirements:
To use your home for business....
1) You must regularly use part of your home exclusively for a trade or business.
2) The home office must be your principal place of business, a place to meet or deal with patients, clients, or customers in the normal course of your business, or a separate structure that is used in connection with your business.
If you use your home for business, you can deduct home office expenses if you use it for the convenience of your employer.
Take a look at some Deductible Expenses for Home Office and some additional Home office business resources.
If you home business is not registered you can get additional tax advantages by Incorporating your business.
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