Home Office Tax Question

Going into 2014, I am looking to claim home office deductions. I do my everyday work functions from my home “office” which is currently my room; use my own ISP connection to do work, use electricity, water, etc….I am not self-employed, and do work for an employer but I work from home almost everyday (probably go in to work 2 days out of each month). Simply put, do I qualify? Is anyone else in the same situation I am in?
Answer #1
Country? There will be different rules depending on where you live.
Answer #2
Country? There will be different rules depending on where you live.
Texas – USA
Answer #3
The IRS has your answer:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Home-Office-Deduction
Summary
1. Regular and Exclusive Use.
You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business, you can take a home office deduction for that extra room.
2. Principal Place of Your Business.
You must show that you use your home as your principal place of business. If you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction. For example, if you have in-person meetings with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business. You can deduct expenses for a separate free-standing structure, such as a studio, garage, or barn, if you use it exclusively and regularly for your business. The structure does not have to be your principal place of business or the only place where you meet patients, clients, or customers.
Generally, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.
Additional tests for employee use. If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. You must meet the tests discussed above plus:
Your business use must be for the convenience of your employer, and
You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer.
If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home.
The full discussion of what can be claimed is at:
http://www.irs.gov/publications/p587/index.html
You can’t ignore the implications of taking deductions – if you own your home for example, there may be a gain (income gain not capital) when you sell your house depending upon the time you have owned the home and other factors. The hit you may take later could be greater than your savings.
For expenses, Form 1040 is where you deduct expenses for the business use.
NOTE: You will likely want to speak to a tax accountant to understand the complete implications of doing so.
Answer #4
Like his other thread.. It will be good to seek someone who does tax. Which you suppose to do every year (unless you do it yourself). There are MANY deduction that can apply. Not only if you work at home. There are a lots. I kept everything I have and document every paper with customer etc. Kept every receipt even its for fast food during lunch. when tax come. Ill drop it to my tax consultant/advisor. Paid about 50 buck and all paper and stuff get taken care of.