Things You'll Need:
- Computer with Internet
- Accountant
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Step 1
Learn the rules. Not just anyone can deduct the costs for their home office. If you're working from home, deducting the costs associated with your home office can be a big tax saver--but you should know the rules. Talk to your accountant or do some research online to find out what can be deducted in association with your home office.
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Step 2
See if you're a fit. Even if you work at home, you have to be sure you can deduct your home office. To get the home office deduction you are required to use your home office "exclusively and regularly" for your business. That means you have to have the office set aside, not mixed with other activities. If the family room in your house is also used for movie nights and TV watching--in addition to your business--it's technically not applicable. Even if you don't spend all of your time in the office--as long as you manage the business from the home office--you're in.
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Step 3
Go beyond the space. As mentioned, other things associated with the home office can be deducted. The deduction includes personal expenses associated with the office such as heating and lighting. Talk to your accountant and see what else can be deducted, such as Internet costs and remodeling expenses.
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Step 4
Take the deduction. Many people are afraid to claim the home office deduction because they think it's an automatic invitation for an audit. Fear not--if you deserve the deduction, you should be fine in taking it.
