Do You Claim Your Home Office As A Tax Deduction?
February 18, 2008 by Yvonne Russell
Web Worker Daily highlights the fact that many people may be able to claim a home office as a tax deduction, but don’t take advantage of it.
What might be the ultimate barrier for many home-based web workers, however, is the law’s requirement that, in order to deduct expenses for your home office, you use that part of the home exclusively as your principal place of business. Very few people use their home office only for work, even if it is their main place of business.
Even if you have a separate home office, you may also want to use this space for attending to your personal correspondence, or for recreational use unrelated to your home business.
Web Worker daily suggests a pro rata arrangement tax wise, so you still get a pro rata benefit if you use your home office for business e.g. 80% of the time. They say “it would have the great benefit of allowing home-based businesses the opportunity to deduct actual expenses, just like other businesses can.”
Anyone else care to weigh in on this?