How to Qualify for a Home Office Business Tax Deduction

If you use part of your home for business, you may be eligible to deduct expenses for the business use of your home, whether you are a homeowner or renter, in an apartment or mobile home, working for an employer or self-employed. Expenses may include mortgage interest, insurance, utilities, repairs, and depreciation.

In order to qualify for a home office business tax deduction, you must meet two basic requirements:

• You regularly and exclusively use part of your home for conducting business
• You use your home as your primary place of business, even if you do conduct some business outside your home

Employees using part of their home for business must meet these additional requirements:

• Your business use of your house must be for the convenience of your employer
• You cannot rent any part of your house to your employer and then use that rented portion to work for that employer

You need to figure out the percentage of your home that you use for business since deductions are based on this percentage of use. Furthermore, special rules apply for different situations, such as for daycare providers, so be sure to check out the IRS publication 587 Business Use of Your Home, and read the instructions when filing form 8829 Expenses for Business Use of Your Home.

For more information about business taxes, go to www.irs.gov.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.