Home Office Expenses

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Home Office Expenses

Can I claim a home office expense?

Asked Monday, November 28, 2011 by an anonymous user
To deduct home office expenses you must prove that you use the home area "exclusively" and on a "regular" basis as a place of business to meet or deal with clients, patients or customers in the normal course of your business or if you spend most of your working time there and most of your business income is attributable to your activities there. Also it must be a separate structure with no personal use. Exclusive use means solely for business so spare bedrooms or use of a den have been challenged by the IRS.
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Home Office Expenses

What is the IRS publication that explains home office expenses?

Asked Monday, November 28, 2011 by an anonymous user
IRS publication 587 explains the details of deducting a home office.
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Home Office Expenses

What expenses are deductible in my home office?

Asked Monday, November 28, 2011 by an anonymous user
Expenses directly allocated to the home office such as painting the office or buying furniture for the office are 100% deductible. Other expenses indirectly incurred are deductible at a business expense allocation percentage. These would include Real estate taxes, mortgage interest, depreciation, utilities, rent, insurance, snow removal and security.
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Home Office Expenses

How do I allocate indirect expenses in my home office?

Asked Monday, November 28, 2011 by an anonymous user
Generally the number of rooms identified as the home office divided by total rooms equals your percentage of business use.
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Home Office Expenses

What documentation is needed to deduct a home office?

Asked Monday, November 28, 2011 by an anonymous user
In addition to actual receipts of expenses paid, It is a good idea to photograph your home office and keep it with the tax return it is being claimed on. This would add to the proof requirement of business use exclusivity.
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Home Office Expenses

I have a place of business but meet with my clients at home. Does that qualify for the home office deduction?

Asked Monday, November 28, 2011 by an anonymous user
If you meet with clients, patients or customers in a home office you can deduct home office expenses. Professionals such as doctors, attorneys, accountants and architects fall into this category. The home office must be used exclusively for business and be used more than occasional.
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Home Office Expenses

Can I deduct my phone charges as a home office deduction?

Asked Monday, November 28, 2011 by an anonymous user
The basic monthly phone charge for your first telephone line to your home cannot be deducted. Long distance calls or call forwarding, call answering, call waiting used for business can be deducted.
You may deduct the entire phone bill for a second phone line used exclusively for business.
Also additional phone lines dedicated for fax lines are 100% deductible.
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Home Office Expenses

Can I deduct a loss on business that claimed home office deductions?

Asked Monday, November 28, 2011 by an anonymous user
Home office deductions cannot exceed gross income from the home office activity.
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Home Office Expenses

Are my home office deductions lost in the year they were limited?

Asked Monday, November 28, 2011 by an anonymous user
Home office deductions cannot exceed your gross income from your home office activity. If in a year that home office deductions were limited due to the gross limitation then the unused deductions are not lost buy carried forward to future years to be used in a year when gross income exceeds the home office deductions.
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