Question

Writing off expenses for home office

Forum|Forum|4 years ago
October 27, 2021
1 reply
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I am working out of a home office which is located in a structure outside of the living 2 quarters of my house. What expenses can I deduct for the home office? A portion of the mortgage, tax and insurance, utilities, phone and WIFI? If so how do I determine the portion of the total payment that be a qualified deduction?

C

conniem123

Yes, if you use your home office “exclusively and regularly” for your business you may take the home office deduction. The office also has to be your principal place of business or a place you meet regularly with clients or patients.

Can I take the home office deduction?

What does "Regular and Exclusive Use" mean?

What qualifies as "Principal Place of Business" for the home office deduction?

Where do I enter the home office deduction for my business?

There are two methods for the home office deduction; the simplified method and the actual cost method. You can determine which is the best outcome for your tax situation.

https://www.irs.gov/businesses/small-businesses-self-employed/faqs-simplified-method-for-home-office-deduction

You can calculate the portion based on the home office square footage compared to the total square footage.

For your phone service and WIFI service, you can come up with a business use percentage. Keep a note of how you derived to your business usage.

Hope you find this information helpful!

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