Is Your Home
Office Tax
Deductible?
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r e d f c u.o r g
With so many people working from
home, many may be wondering about
a home office tax deduction. It allows
qualified taxpayers to deduct certain
home expenses when they file their
taxes. Does that apply to you? Here's help
answering that question:
You must be a small business owner,
not an employee who receives a W-2
from an employer.
e deduction applies to homeowners
and renters.
Structures on the home's property
can qualify, such as a barn or
unattached garage.
A portion of the home or separate
structure on the property must be
used exclusively and regularly as the
primary place of business.
You can use a portion of a room as
a home office – or a portion of your
garage or attic for business inventory
– but you must ensure the business
space is clearly separate from the
personal space.
Direct office expenses, such as
furniture and window treatments,
are deductible, but you can't deduct
improvements outside your office or
home, such as landscaping.
Indirect office expenses apply to
your entire home, including rent
or mortgage, property taxes, and
insurance. You'd have these costs
even if you didn't have a home office,
so they're partially deductible based
on your office size and the deduction
calculation method.
If you believe you qualify, talk to a
qualified tax accountant for more
information on calculating your deduction.
Be sure to keep good records: copies of
the IRS form that shows the interest you
paid on your mortgage each year (or a
copy of your lease agreement), property
tax bills, utility and insurance bills, and
documentation for any other expenses that
you deduct.
