Home Office Deduction Must Knows

I've been getting questions on the home office deduction and how it works. So here 's what you need to know.

If you are self employed or run a business, the IRS allows you to write off the business use portion of your home. That means things like rent, mortgage interest, utilities, etc. become tax deductible based on the business use sq footage.

So let's say you live in a 2,000 sq foot home and you use a 200 sq foot room for business, you get to take a deduction for 10% of your rent and utilities for the year.

Keep in mind that your home office has to be used 100% for business only. In my example, the 200 sq feet can only be used for business. That means if you do any non business activities in that space, that area of sq footage no longer qualifies.

So keep track of all your monthly payments and at tax time we'll take advantage if you or your business qualifies.

Let me know if you have any questions.