Home Office Tax Deduction Options

Home officeIf you use a portion of your home exclusively as a home office, you can usually deduct it as a business expense.

And if you use a portion of your home exclusively for other business uses, such as product storage, you may also be able to deduct that expense.

There are two options available to calculate the tax deduction.

The simplified version uses a cost of $5 per square foot up to a maximum of 300 square feet.

The traditional calculation requires filing Form 8829 with your tax return.

Form 8829 requires you to detail all the related costs of your home business use and may result in a higher deduction in return for the greater effort of filling out the form.

IRS Publication 587 gives you all the details or you can discuss it with your tax preparer to see if you qualify.

© AskConny.com