Claim Home Office On Taxes

Figure your total income for the year.

Claim home office on taxes. You can claim for any space you use primarily for your business. Generally when using the regular method deductions for a home office are based on the percentage of your home devoted to business use. If your office takes up 200 square feet of your 2000 square foot home and you spend 30000 on eligible home maintenance and repair costs you can deduct 10 of your total costs or 3000 on. You can also deduct expenses related to your home office.

So if you use a whole room or part of a room for conducting your business you need to figure out the percentage of your home devoted to your business activities. For example if your home office takes up 10 percent of the square footage of your home you can claim 10 percent of utilities insurance property tax and mortgage interest. The amount you can deduct for work space in the home expenses is limited to the amount of employment income remaining after all other employment expenses have been deducted. Requirements to claim the home office deduction.

Your garage if you use it to store stock. If your home office qualifies for the tax deduction you can claim a portion of your household expenses. What you can claim. For example if your home office space is 200 square feet and your home is 2000 square feet you would claim 10 2002000 of your home related expenses insurance taxes mortgage interest etc.

You would deduct 10000 multiplied by 10 1000 in depreciation expense as part of your home office deduction each year.