If you use an area in your home REGULARLY and EXCLUSIVELY for business, there are tax deductions available for your business. This article is a nice explanation of what is required to take this valuable tax deduction.
Home office deductions can save taxpayers a bundle, if they meet the tax law qualifications. However, claiming expenses for a home office has long been a red flag for an IRS audit since many people don’t qualify. But don’t be afraid to take a home office deduction if you’re entitled to it. You just need to pay close attention to the rules to ensure that you’re eligible — and that your record keeping is complete.
For Self-Employed Individuals
For self-employed individuals, a home office qualifies for deductions if it is used:
- Exclusively and regularly as your principal place of business;
- Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business; or
- In the case of a separate structure, in connection with your trade or business.
There are also special rules for portions of a…
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