Office in Home Deduction

HOME OFFICE DEDUCTION Do you have an area of the home you use exclusively for business?

If so, the following information is needed:

• Square footage of area used exclusively for business

•  Total square footage (excluding garage)

•  Electric, gas (not water)

• Maid service if it includes the office

• Home insurance or Renters insurance

• Portion of DSL used for business

If you rent the home or apartment

            ·     Rent expense for the year (or portion to which the business applies)

            ·     Cost of Home (best to have copy of settlement statement when purchased) 

               ·      Value of Land on date of purchase 

NOTE:  The usage of the area (area, not necessarily a closed off room) must be used EXCLUSIVELY for business. 

Simply multiply the business use percentage (Square footage of area used exclusively for business divided by the Total square footage (not including garage) TIMES the total expenses. 

These requirements are discussed in greater detail in IRS Publication 587, Business Use of Your Home available at www.IRS.gov

This entry was posted on 3. February 2009 at 19:50 and is filed under Income Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.