Home Office Tax Deduction

Home office Tax deduction - The definition of home office was liberalized beginning in 1999. Now if you keep records, schedule appointments and carry on other such activities from your home office, some common office expenses, such as utilities, insurance, repairs, cleaning and depreciation, may qualify for a deduction, even if you do the actual work in another location.

Be aware, however, any depreciation claimed after May 6, 1997, will be taxed at 25% if the residence is sold for a gain, whether or not the property has been converted to personal use.

Helpful Hint - If you or your family use your home office for non-business purpose, it cannot be claimed on your tax return. To claim home office deductions, the space must be used exclusively for business purposes.

As always, check with your tax advisor to understand how this can affect you before you claim on your tax return.

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