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Home Office Deductions & the Irs

In summary, the IRS allows you to deduct expenses for a home office if it is your primary place of business or used regularly and exclusively for business purposes. This includes rent, mortgage interest, utilities, insurance, repairs, and depreciation. However, you cannot deduct expenses for the portion of your home used for personal activities. There are two methods for calculating the deduction: the simplified method and the regular method. If you are an employee, you can only claim a home office deduction if your employer requires you to work from home and does not provide you with a designated workspace. To claim a home office deduction, you must keep records of all expenses related to your home office for at least three years. If you sell your home after claiming a home office
Deb Bixler
Deb Bixler
Gold Member
130
The IRS and Home Office Deductions
This audio recording has some really good ideas on how to make the most of your income tax deductions.

Thought you may be interested in learning more about the home office deduction and how to be IRS compliant with your deductions. Make the most out of your home office deduction using a http://www.createacashflowshow.com/building-show-business/direct-selling-and-tax-deductions.htm You deserve to keep your hard earned money! Right!;)
 
Wow! You wrote this? Thanks!
 
  • Thread starter
  • #3
I did write it and I thought that was the one that included an audio of the seminar that I did for the Direct Selling Women's Alliance but it was the wrong article. Sorry, this article on the http://www.createacashflowshow.com/home-business-strategies/tax-home-office-deduction.htm is the one with the tele-seminar.
 
Thanks, Deb!
 
Hello there! Thank you for sharing this audio recording and the link to learn more about the home office deduction. As a Pampered Chef consultant, it's important for us to stay informed and compliant with the IRS when it comes to our deductions. I'll definitely check out the resource you shared and make sure I am maximizing my deductions. After all, every penny counts when it comes to our hard-earned money. Thanks again for sharing!
 

What expenses can I deduct for my home office?

The IRS allows you to deduct expenses for a home office if it is your primary place of business or used regularly and exclusively for business purposes. This includes rent, mortgage interest, utilities, insurance, repairs, and depreciation. However, you cannot deduct expenses for the portion of your home used for personal activities.

How do I calculate my home office deduction?

The IRS offers two methods for calculating your home office deduction: the simplified method and the regular method. The simplified method allows you to deduct $5 for every square foot of your home office, up to 300 square feet. The regular method requires you to calculate the actual expenses of your home office and allocate them based on the percentage of your home used for business purposes.

Can I claim a home office deduction if I am an employee?

If you are an employee, you can only claim a home office deduction if your employer requires you to work from home and does not provide you with a designated workspace. In this case, you can deduct certain home office expenses as miscellaneous itemized deductions on your tax return.

What records do I need to keep for my home office deduction?

To claim a home office deduction, you must keep records of all expenses related to your home office, including receipts, bills, and a record of the square footage of your office space. It is important to keep these records for at least three years in case of an IRS audit.

What happens if I sell my home after claiming a home office deduction?

If you sell your home after claiming a home office deduction, you may be subject to capital gains tax on the portion of your home that was used for business purposes. This is known as depreciation recapture and can be avoided if you continue to use the home for business purposes or sell it at a loss. Consult with a tax professional for more information.

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