I did NOT write this - it came from the IRS tax tips but I have
had a dozen questions about offices in the home in the USA and it
seemed apropos. You can find publication 587 at
http://www.irs.gov/pub/irs-pdf/p587.pdf
david ingram
HOME OFFICE DEDUCTION
If you use a portion of your home for business purposes, you may
be able to take a home office deduction whether you are
self-employed or an employee. Expenses that you may be able to
deduct for business use of the home may include the business
portion of real estate taxes, mortgage interest, rent, utilities,
insurance, depreciation, painting and repairs.
You can claim this deduction for the business use of a part of
your home only if you use that part of your home regularly and
exclusively:
a.. As your principal place of business for any trade or
business
b.. As a place to meet or deal with your patients, clients or
customers in the normal course of your trade or business
Generally, the amount you can deduct depends on the percentage of
your home that you used for business. Your deduction will be
limited if your gross income from your business is less than your
total business expenses.
If you use a separate structure not attached to your home for an
exclusive and regular part of your business, you can deduct
expenses related to it.
If you are self-employed, use Form 8829 to figure your home
office deduction and report those deductions on line 30 of
Schedule C, Form 1040. There are special rules for qualified
daycare providers and for persons storing business inventory or
product samples.
If you are an employee, you have additional requirements to meet.
The regular and exclusive business use must be for the
convenience of your employer.
For more information see IRS Publication 587, Business Use of
Your Home, available at irs.gov or by calling 1-800-TAX-FORM
(1-800-829-3676).
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David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa
Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA)
time - (please do not fax or phone outside of those hours as
this is a home office)
email to taxman at centa.com
www.centa.com www.david-ingram.com
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