Can I deduct my home office for taxes?
You absolutely can deduct a portion of your home office for taxes!
When using part of your home for business whether your are a renter or homeowner, you may be able to deduct expenses for the business use of your home, the IRS call this “business use of your home” expense. If eligible you may be able to deduct a percentage of the many costs associated with running your business from home. Woot Woot!!
These costs can include utilities, insurance, rent, mortgage interest, depreciation, real estate taxes, repairs, and renovations that relate to your business.
According to the IRS, your home can be a house, condo, apartment, unit even a boat or mobile home, as long as you can cook and sleep there you should be right!
The home office tax deduction can also be used for areas in your home that you use to conduct your business such as a studio, workshop, garage, kitchen or office.
It is important to note that you must meet two tax law requirements to qualify for the home office tax deductions and these comprise of:
Regular and exclusive use, meaning you must regularly use part of your home exclusively for trade or business.
You also have to show that you use your home as your principle place of business or you must atleast be able to show that you meet patients, client or customers at home, or you use a separate structure on your property such as a separate office/garage for business use.