How Do You Claim Home Office Deductions?
New rules were instituted in 1999 for claiming an office-in-home deduction on your tax return. If you couldn’t deduct these expenses under the old tax law, you may be able to do so now. If you are self-employed, transfer the deduction to Schedule C. If you are an employee, transfer the deduction first to line 4 of Form 2106, if you are using it, or directly to the miscellaneous deductions section of Schedule A. Determine if your home office is used exclusively and regularly to manage or administer your business. Make sure you have no other fixed location where you do the major managerial or administrative work. Verify that your home office is also used for the convenience of your employer if you are an employee rather than an independent contractor or sole proprietor. Use IRS Form 8829 if you are self-employed or Federal Worksheet 51A if you are an employee. Take the square footage of your office and divide it by the square footage of your entire home to obtain the percentage of the co
