Tax Deductions You Can Claim For Your Home Office
Many working adults now have the option to telecommute, or work from home. This may require setting up their own home offices. Around tax time, you may consider adding many of these home office expenses to your taxes as deductions. There are things to take into consideration when looking at what to deduct and what not to deduct.
Tax deductions for a office at home depend on whether the items, products, or services you are deducting are used just for the home office, or if they benefit both the home and the office. If the item benefits both home and the home office, you are allowed to deduct a percentage of the overall expense. This could include repairs, insurance, security, and rent or mortgage. Other expenses, such as furniture, office supplies, computer or other office equipment, may be deducted in their full cost. Here are some items that you can consider deducting in full, or partially.
· Rent/Mortgage (partial deduction)
· Utilities (partial deduction)
· Furniture
· Computers
· Office equipment (fax machine, copier, etc.)
· Renter/s Home Owners Insurance (partial deduction)
· Repairs/Maintenance (partial deduction)
· Security (partial deduction)
· Depreciation of home office equipment
· Office supplies (paper, pens, paperclips, etc.)
· Meals and transportation associated with business
· Cell phone use for work (as long as it is not reimbursed by your employer)
Please note, it's best to consult a tax accountant prior to making any of these decisions on your own to avoid being audited. You can also contact your local IRS office to answer any questions you may have.
