Ask an Accountant: Claiming Office Space

accountant

This column is brought to us by Sharon from Mom on a Dealz. Madame Deals Inc. uses her husband as our business and personal accountant and gives him 5 stars. He is available for questions and was a pleasure to work with!

Remember, if you have a tax question, email my husband who is an experienced accountant at [email protected]

Question:

I work at home. Can I claim home office as a business expense?

Answer:

To take a business deduction a tax payer must use part of his/her home under one of the following situations:

  • The area of the home must be used exclusively and regularly as the principle place of business.
  • The area of the home must be used exclusively and regularly as the place to meet clients/customers.
  • The area of the home must be used exclusively and regularly as storage for inventory or product samples.
  • There can be a separate structure such as a shed or detached garage that can be used as an office.
  • The home is used for a rental activity.
  • The home is used for daycare.

Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

photo credit: austinpost.org

IRS Circular 230 Notice: Any U.S. tax advice in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions




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