- There must be NO WHERE ELSE that you can work.
- If you are an employee it means there is no where that your employer provides that you are allowed to work. You can’t claim a home office if you are working at home for your own convenience. If there is a place to work at your employer and you chose not to work there you can’t claim a home office.
- If you are self employed and have an office elsewhere then you can’t also claim a home office
As explained in last week’s blog, the IRS CAN show up unannounced at your home and sometimes announced through the audit process. Be sure you are using the correct dimensions for the office if you are using one.
- The room must be used REGULARLY & EXCLUSIVELY for the business ( no treadmills or televisions for instance)
Here’s some info on the rules courtesy of the IRS.
Consider using the SIMPLIFIED METHOD
- you get $5 per square foot up to 300 feet
- so much easier to track.
- no tallying up utilities and tracking insurance payments
- 100% of real estate tax and mortgage interest does on schedule A
- no recapture of depreciation upon sale of home