Home office checklist
If you're running a business from home, you may be able to deduct certain expenses.
To qualify for a home office deduction, the space must be used exclusively and regularly for business, and it should be your primary place of business.
Deductible Expenses
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Direct Expenses: Costs directly related to the home office, like repairs or office supplies.
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Indirect Expenses: A portion of costs for the entire home, such as:
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Mortgage interest or rent
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Utilities (electricity, water, etc.)​​
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Methods to Calculate Deduction
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Simplified Method: $5 per square foot of your home used for business, up to 300 square feet (max deduction $1,500).
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Regular Method: Calculate the percentage of your home used for business and apply that to your actual expenses.
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Please consult your tax advisor to determine the appropriate method for your home office deduction.
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Record-Keeping
Keep receipts and documents to support your deductions. Following these guidelines, you can potentially reduce your taxable income based on your home office expenses.