Home Office Deduction And Why This Deduction May End Up Costing You In The End!
If you own a business, you have great chances of converting your personal expenses into allowable business deductions.
Claiming Deductions For Home Office
In order to claim a tax deduction for home office expenses, a taxpayer must use that part of the home only as the principal place of business, and on a regular basis.
A taxpayer can deduct home office expenses, if a part of his home is designated as a place of business used by patients, clients, or customers in connection with the course of his business.
You may be allowed to deduct expenses related to a storage unit annexed to your home, if this space qualifies for a home office deduction. The space must be used regularly for business purposes, even if is not used exclusively.
Tax Deduction Limits
In order to qualify for a home office deduction, the total amount of home office expenses you claim must not exceed the gross income from your business in that year.
You may include in your home office expenses, rent, utilities, depreciation on your office furniture and equipment, phone, and insurance costs.
You can claim your home office deduction on your tax return using Form 8829. You may report these on Form 1040, Schedule C under Profit or Loss of Business.
Since Joe Mastriano PC deals with the IRS every single day, we know what steps we need to be take to resolve your tax problem. With over 30 years of experience, we have the experience and a successful track record that will put you at ease. Contact us today to setup your consultation. We will discuss your options, explain to you how to handle the home office deduction situation and if necessary, we can manage the process for you. Visit our website for free advice or call us NOW (713)774-4467. Hire the ‘KILLER IRS REPRESENTATIVE’ to resolve your tax problem.
