Home Office Tax Deductions

If your home doubles as your office, many options exist for taking legal advantage of the tax code.  Recent changes in the law benefit workers that use the home as an administrative base even if actual 'work' is done outside of the home.

- Document, document, document.  Record all deductible items including: computers, office equipment, furnishings, pro-rated utility bills, rent, telephone costs, and even homeowners insurance and association fees.

- Discus with you tax adviser the option of whether taking a depreciation option for office space is a viable option (or not).

- Meet with your adviser on a scheduled basis.  Meetings may take place quarterly, annually or more frequently, depending on your circumstances.  These analysis and review meetings will help ensure that you are taking the options allowed.

The following web sites provide useful information and may help answer common questions:

- www.toolkit.cch.com, the web site of CCH Inc.,an Illinois business information service.

- www.irs.ustreas.gov, the IRS web site and download IRS Publication 587, Business Use of Your Home.



- AJ