Deducting your home office

When can you deduct the cost of your home office?

First of all, there must be a specific area of your home that is set aside for and used exclusively on a regular basis.  This area must meet one of the following requirements:
  1. It is the principal place of your trade or business.
  2. It is a place where you meet with patients, clients or customers in the normal course of your trade or business or
  3. It is a separate structure used in your trade or business which is not attached to your house or residence.
If you are an employee, and your home office is for the convenience of your employer, and it is used exclusively on a regular basis, then you can also deduct the cost of your home office.
The completed workplace
My home office (just kidding)
The completed workplace
by yprime, on Flickr
The rules here are, of course, more complicated.  Before you take this or any other deductions, don’t trust some blogger on the internet.  Speak to a professional accountant or learn the IRS rules.
Tomorrow: the costs of your home office that you can deduct.

About Mark P. Holtzman

Chair of Accounting Department at Seton Hall University. PhD from The University of Texas at Austin. Worked at Deloitte's New York Office. BSBA from Hofstra University.

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