Working from home has many benefits that extend beyond the lack of a commute to work. One of those benefits is a Home Office Tax Deduction. However, when it comes to claiming that home office as a tax deduction there are several things to consider to ensure it is claimed correctly. Most importantly you need to make sure that the area you claim is used exclusively for that business.
Below is an article from realtor.com that explains the details of Home Office Tax Deductions and how to ensure you are claiming them correctly. After reading the article, give us a call at Carney Realty so we can assist you in using the current tax laws to help you when buying or selling a home.
Source: realtor.com | Re-Post Carney 3/22/2018 –
A home office tax deduction might sound like free money, but hold on! You may want to consider a few things before you file your taxes with this deduction included.
According to the latest figures from the Bureau of Labor Statistics, 24% of employed people now do some or all of their work at home. Beyond the obvious benefits of unfettered access to your refrigerator and a dress code of stretchy elastic-waist pants, working at home can save you more than lunch money on National Tax Day, thanks to the home office deduction.
Simply put, the home office deduction allows you to write off part of your home expenses on your business tax return by separating out the costs associated with using your home for personal purposes (making pancakes) and business (answering work email). Yet of all the tax write-offs available, this one is among the most murky and misunderstood.
Allow us to clear the air for you happy home workers so you can claim your home office tax deduction with confidence.
Who can claim the home office tax deduction?
To claim the deduction, you must meet two requirements. First, an area of the home has to be designated as your principal place of business, and—the clincher—used exclusively for work. Got that?