How Do You Deduct Home Office Expenses?
The surge of people working from home has given way to some nice exemptions on the annual IRS forms. Deduction of home office expenses provides the best of these. While enjoying the 5-minute commute to your workstation, you can deduct home office expenses to add up to quite a nice savings. Add to your federal income tax a percentage of the rent or mortgage payments, interest and utilities. Maintain an office space for your daily work at home. This space should be the only place you do this work. You do not have to have an office elsewhere as well. Figure how many square feet of your home is dedicated to the exclusive use of your business. Take the total square footage of your home and mathematically decide the percentage. As an example–if your house is 1,000 square feet and your office is 100 square feet, you will multiply your expenses by 10 percent to get your deduction. Track your home expenses from January through the end of the calendar year. Keep a written record-you will need i
