Business Use Of Home Tax - GoFuckYourself.com

jasmine · 01-12-2004, 06:58 AM

I have never claimed "business Use Of Home" when filing my taxes. I have worked from my home for the past 5 years and have been told that it brings up a red flag to the IRS.

Do you any of your claim "business use of home" when filing your taxes each year ?

Vic Lagina · 01-12-2004, 07:05 AM

I never done it before until this year.

My accountant told me that I can deduct half my rent since I work out of home.

Hope this helps...

budz · 01-12-2004, 07:46 AM

http://www.irs.gov/publications/p535/ch01.html

Business use of your home. If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation.

To qualify to claim expenses for the business use of your home, you must meet the following tests.
The business part of your home must be used exclusively and regularly for your trade or business.

The business part of your home must be one of the following.

Your principal place of business.

A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business.

A separate structure (not attached to your home) you use in connection with your trade or business.

You generally do not have to meet the exclusive use test for the part of your home that you regularly use in either of the following ways.
For the storage of inventory or product samples.

As a daycare facility.

Your home office qualifies as your principal place of business if you meet the following requirements.
You use the office exclusively and regularly for administrative or management activities of your trade or business.

You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.

Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors.
The relative importance of the activities performed at each location.

If the relative importance factor does not determine your principal place of business, you also can consider the time spent at each location.

For more information, see Publication 587.

myjah · 01-12-2004, 08:24 AM

Quote:

Originally posted by Vic Lagina
I never done it before until this year.

My accountant told me that I can deduct half my rent since I work out of home.

Hope this helps...

i write off my home office every year and have never had a problem so far. however, when i was renting an apartment, my accountant did not recommend that I write off my home office. don't know why.

jasmine · 01-12-2004, 08:27 AM

Thank you all for the information. I might try it this year and see what happens, I do meet all the critera.

Ross · 01-12-2004, 08:30 AM

I have a seperate office in my house. Its being built as we speak. Almost done now. I got to pay tax this month I think. So when I get the call from my accountant I will be giving him all the receipts for building materials and labour.

01-12-2004, 06:58 AM	#1
jasmine Confirmed User Join Date: Aug 2001 Location: Virginia Posts: 1,013	Business Use Of Home Tax I have never claimed "business Use Of Home" when filing my taxes. I have worked from my home for the past 5 years and have been told that it brings up a red flag to the IRS. Do you any of your claim "business use of home" when filing your taxes each year ? __________________ I've been getting paid by SexOnTheSide for 10 years!

01-12-2004, 07:05 AM	#2
Vic Lagina Confirmed User Join Date: Jul 2003 Location: West Palm Beach Posts: 1,409	I never done it before until this year. My accountant told me that I can deduct half my rent since I work out of home. Hope this helps... __________________ SIG TOO BIG! Maximum 120x60 button and no more than 3 text lines of DEFAULT SIZE and COLOR. Unless your sig is for a GFY top banner sponsor, then you may use a 624x80 instead of a 120x60.

01-12-2004, 07:46 AM	#3
budz Disruptive Innovator Industry Role: Join Date: Sep 2003 Location: Vegas Posts: 4,230	http://www.irs.gov/publications/p535/ch01.html Business use of your home. If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. To qualify to claim expenses for the business use of your home, you must meet the following tests. The business part of your home must be used exclusively and regularly for your trade or business. The business part of your home must be one of the following. Your principal place of business. A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business. A separate structure (not attached to your home) you use in connection with your trade or business. You generally do not have to meet the exclusive use test for the part of your home that you regularly use in either of the following ways. For the storage of inventory or product samples. As a daycare facility. Your home office qualifies as your principal place of business if you meet the following requirements. You use the office exclusively and regularly for administrative or management activities of your trade or business. You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. The relative importance of the activities performed at each location. If the relative importance factor does not determine your principal place of business, you also can consider the time spent at each location. For more information, see Publication 587. __________________ C:\Code\ C:\Code\Run\

01-12-2004, 08:27 AM	#5
jasmine Confirmed User Join Date: Aug 2001 Location: Virginia Posts: 1,013	Thank you all for the information. I might try it this year and see what happens, I do meet all the critera. __________________ I've been getting paid by SexOnTheSide for 10 years!

01-12-2004, 08:30 AM	#6
Ross Ik ben een aap Industry Role: Join Date: Sep 2002 Location: Traffic Force Towers, Canada! Posts: 18,874	I have a seperate office in my house. Its being built as we speak. Almost done now. I got to pay tax this month I think. So when I get the call from my accountant I will be giving him all the receipts for building materials and labour.