|
IRS Tax Tip 2008-53
If you use a portion of your home for business
purposes, you may be able to take a home office
deduction whether you are self-employed or an
employee. Expenses that you may be able to deduct
for business use of the home may include the
business portion of real estate taxes, mortgage
interest, rent, utilities, insurance,
depreciation, painting and repairs.
You can claim this deduction for the business
use of a part of your home only if you use that
part of your home regularly and exclusively:
- As your principal place of business for any
trade or business
- As a place to meet or deal with your
patients, clients or customers in the normal
course of your trade or business
Generally, the amount you can deduct depends on
the percentage of your home that you used for
business. Your deduction will be limited if your
gross income from your business is less than your
total business expenses.
If you use a separate structure not attached to
your home for an exclusive and regular part of
your business, you can deduct expenses related to
it.
There are special rules for qualified daycare
providers and for persons storing business
inventory or product samples.
If you are self-employed, use Form 8829 to
figure your home office deduction and report those
deductions on line 30 of Schedule C, Form 1040.
If you are an employee, you have additional
requirements to meet. The regular and exclusive
business use must be for the convenience of your
employer.
For more information see IRS Publication 587,
Business Use of Your Home, available at IRS.gov or
by calling 800-TAX-FORM (800-829-3676).
Remember that for the genuine IRS Web site be
sure to use .gov. Don't be confused by
internet sites that end in .com, .net, .org or
other designations instead of .gov. The address of
the official IRS governmental Web site is
www.irs.gov.
Links:
-
Publication 587, Business Use of Your Home ( PDF
214K)
-
Form 8829, Expenses for Business Use of Your
Home ( PDF
64K)
-
-
Schedule C, Profit or Loss from Business ( PDF
111K)
-
Schedules A&B, Itemized Deductions and
Interest & Dividend Income ( PDF
116K)
|
