When you use part of your home for business, you may be able to deduct a percentage of many of the costs of running your home, such as utilities, rent, insurance, depreciation, mortgage interest, real estate taxes, and some casualty losses, repairs, and improvements (if they relate to the part of the house you use for business). The home office deduction is available to renters and homeowners alike.
Do you take the home office deduction? If so, are you prepared in case an IRS auditor inspects your office to make sure it qualifies for the deduction? You should be. IRS auditors can and do inspect home offices. In fact, the Internal Revenue Manual says that "when determining the validity of office
If you have an office in your home that qualifies for the home office deduction, you’ll be able to deduct a variety of home expenses. These include not only a portion of your rent or mortgage payments and utilities, but some home repairs as well. The ability to deduct repair costs is particularly valuable,
Today, lots of people work at home. One of the best tax deductions for home workers is the home office deduction. It allows you to deduct a portion of your rent or home mortgage expense, plus utilities, if you use a part of your home as a business office. However, your business must earn a profit to