Deduction For Home Office – Work From Home

For those who work from home, going to work means get a cup of coffee in the morning and walk to your work space or computer. In the U.S. about 60 million people, are regularly working at home. The new reports estimate that someone starts a work from home business in every 11 seconds.

Less than a quarter of these workers are likely to claim home office deductions. Internal Revenue Service (IRS) records reveal that only 3.5 million tax filers claimed the deduction for the past tax year, with the average deduction around $2,500. One main reason is that many work from home workers simply don’t meet the IRS’s strict criteria for claiming the home office deduction. 오피

Some others qualify but don’t make use of the opportunity because they think it will attract “audit”. But that is not true any more, but you have to be careful.

The basic rule is that, you can claim the deduction if, Your work from home office is your principal place of work The space is used exclusively and regularly for work

Network marketers. MLM, consultants, free lance writers  also can qualify for this tax deduction. People who choose to work from home are allowed to take advantage of home office tax deduction within the terms specified in IRS regulations. Note: Please consult your tax professional for planning and before taking any actions.

I personally am using a portion of my home for business purposes, so am qualified to take a home office deduction. Whether you are a work-from home business person or an employee, you will be qualified for this deduction if you meet certain criteria specified by the government. For this to work for you, the space you use for work from home opportunity must be used regularly and exclusively for business purpose. If you work from home and do you are calling of prospects at the kitchen table where your kids also do their school home work, this doesn’t disqualify for deduction.

If you regularly meet with customers, talk with clients on the phone, do your administrative work or meet patients in an area of your house that is exclusively used for this purpose, then you may fulfill this requirement.

Figure out what percentage of space of your house you use for work  from home activities. This is a percentage to the total square footage of your living space. You are allowed to deduct a portion of the home expenses that benefit for the business including utilities, depreciation expense on home, home maintenance and repairs, home insurance, property taxes etc. You allocate these expenses based on the business use percentage of your home. Your work from home office space deduction is limited to the net income from the business attributable to your home office, but any excess can be carried forward for ever. The home office deduction involves many rules, but if you qualify, it can be well worth your time and effort.