For small business owners, sole proprietors, and telecommuters, the question of how to deduct your home office on your annual tax filing is a valid one. The answer can also be somewhat complicated, which is why many people don’t bother to take the deduction. But please read on. Taking steps to deduct your home office from your taxes can be a major money saver. These are the “in a nutshell” rules from the IRS:
- Your home office is considered the primary place in which you conduct trade or business.
- Your home office may or may not be attached to your residence; it may be a separate structure on the property used exclusively as a home office.
- Your home office is where you meet clients, customers, or patients during the normal course of business.
For more in-depth advice, head over to the full post at the FlexJobs blog.