Five Facts about the Home Office Deduction from the IRS
With technology making it easier than ever for people to operate a business out of their house, many taxpayers, entrepreneurs and small business people may be able to take a home office deduction when filing their 2009 federal tax return next year.
part of your home exclusively and regularly:
- As your principal place of business, or
- As a place to meet or deal with patients, clients or customers in the normal course of your business, or
- In the case of a separate structure which is not attached to your home, it must be used in connection with your trade or business For certain storage use, rental use or daycare-facility use, you are required to use the property regularly but not exclusively.
home that you used for business. Your deduction for certain expenses will be
limited if your gross income from your business is less than your total business
expenses.
business inventory or product samples.
Home, to figure your home office deduction. Report the deduction on line 30 of
Schedule C, Form 1040.
employee. For example, 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 on IRS.gov or by calling 800-TAX-FORM (800-829-3676).
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Thanks to:
John Berger
SB/SE C&L, External Outreach Branch
Room 940, Fallon Federal Building
Baltimore, MD 21012
Tel: 410-962-9025
Fax: 410-96202572
e-mail: john.r.berger@irs.gov