How to Claim a Home Office Tax Deduction
If you work at home, full or part-time, chances are you can claim a home office deduction on your yearly tax return. Check out the following information to see if your home office is eligible to act as a deduction.
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Instructions
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Think about the work you do. Set up your home office so that it is separate from other happenings in the home. You need a private space to do work anyway, so this may already be the case.
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Select an area in your home you will use regularly and solely for your work. This must show when you report your deduction.
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Divide the area in your home office by the area of your entire home. This number gives you the percentage you will work with to figure your deductions.
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Keep scrupulous records with your deductions. If you have a home office that takes up 20 percent of your full home square footage, You can take off 20 percent of the rent or house payment, electricity, water, even garbage pickup.
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Consider the phone, however, as another matter. The phone is for the use of the home. You will need a second line or a mobile phone dedicated to your business in order to deduct the bill.
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Get the appropriate form from the IRS. You can get this from an accountant or download Form 8829 and the accompanying instructions from the IRS website. Fill out the information required by the form one question at a time. You must stop and look up deduction information periodically.
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