Can You Write off Your Home Office?

write-off-home-officeCan You Write off Your Home Office? Tax Tips from the Experts.

It’s been questioned and bandied about for ages. Some people will tell you that it’s a myth and that you cannot deduct expenses related to a home business such as a special services or the home itself from your taxes. The reality is quite the opposite. You can deduct your home expenses and you can, in certain cases, deduct the expenses for your home from your taxes. The IRS prescribes certain cases where you are able to do so, but they are fairly stringently regulated.

Whether you are an employee of a company which allows you to work from home or you are a self employed person who works from home full time, there are certain times that you may be able to take a deduction for your home.
If you are using part of your home as an office or a work-space, you can write off home office and deduct a portion of your home as a business expense.

The IRS does make a few rules as regards using your home as a business expense however. These include the following:

In order to claim your home as a business expense, there must be a specific area that is used exclusively for business and no other purpose typically exists for that area. Your home must be used as the principal area from which you do business. It must be used as a place where you deal with clients and customers in the normal pursuit of your business.

You are, in some cases, such as the case of a day care facility in your home, permitted to use that area non-exclusively. The same may hold true if you do babysitting or storage space in the home. NOrmally the amount that you can take as a deduction will depend on the amount of space in your home that you use on a day to day basis for your business. Your deduction is going to be limited if your gross income is less than your total business expenses.

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