Work from Home Tax Deductions

By Ellen Shirley for Work-from-Home.org

Work from home Tax Deductions can add up to big money in the bank!  If you work from home, make sure you're taking advantage of all these valuable tax deductions that can add up to BIG BUCKS in tax savings and help make working from home even more rewarding:

Common Home Office Tax Deductions:

• Financing of your home (also deductible without a home-based
• business)
• Casualty Losses (also deductible without a home business)
• Real Estate Taxes (also deductible without a home business)
• Depreciation
• Utilities: Heating, cooling, etc., electricity, gas.
• Trash Removal
• Cleaning Services
• Homeowners or Renters Insurance Premiums (and possibly deductibles
• when applicable)
• Repairs on your property and equipment such as roofing, painting,
• and many other repairs.
• Security systems and monitoring
• Phone and internet service.
• Business-related storage areas
  

If your home is your principal place of business, you may also be able to deduct expenses like mileage going to and from locations related to your work and home. For example, when you leave to buy office supplies for your home business or mail a package, you may be able to DEDUCT the expenses related to the trip.

There are many other business expenses you may be able to claim. These are just the expenses related to your home office.

To make your claim to these types of deductions you must use that portion of your home for trade or business use, or for the convenience of your employer (see rules). You can not claim these deductions for a profit-seeking activity that does not meet the above criteria. (Lesson: If you are conducting business activity
that meets these criteria in your home, be sure you take the steps necessary to prove that you are conducting business or trade and not merely engaged in a 'profit seeking' activity. See IRS Rules for more information.

The portion of these expenses that you can deduct will depend on the portion of your home that you use for your business. (See IRS Rules) Exclusive and Regular use... You can not deduct a portion of your home and its related expenses if that portion of your home is also used for personal purposes or not used regularly.

Helpful Links:  
The Internal Revenue Service's Publication concerning Home Offices

Find an accountant in your area at Goodaccountants.com.

Please note that this information is not intended to give financial, tax or legal advice. Please consult a competent professional with questions about tax, finances or other such issues.