Business Use of Home

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What can deduct for a home office?

Business Use of Home

Over the past few years, the IRS has made it easier for home-based business owners to deduct the business use of their homes.
Keep in mind the following when thinking about deducting business use of your home:
To qualify to claim expenses for the business use of your home, you must meet the following tests.

1.Your use of the business part of your home must be:
a.Exclusive (however, there are exceptions to exclusive use),
b.Regular,
c.For your business, AND

2.The business part of your home must be one of the following:
a.Your principal place of business,
b.A place where you meet or deal with patients, clients, or customers in the normal course of your business, or
c.A separate structure (not attached to your home) you use in connection with your business.

For full details on what you can deduct and how to deduct it, see IRS Publication 587-Business Use of Your Home.

   

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