What are the rules for deducting home office expenses?
The deduction of home office expenses has been the subject of frequent tax disputes. In order to qualify for the deduction, the part of the home used for business must be for the exclusive and regular use of the trade or business. The home office must also be one of the following: the taxpayer’s principal place of business, a place where the taxpayer meets with patients, customers or clients in the normal course of the trade or business, or a separate structure (not attached to taxpayer’s home) used in connection with the trade or business. The requirements impose further restrictions on an employee’s use of a home office. An employee must also use the home office for the convenience of the employer and the employee cannot rent the home office to the employer.
The deduction of home office expenses has been the subject of frequent tax disputes. In order to qualify for the deduction, the part of the home used for business must be for the exclusive and regular use of the trade or business. The home office must also be one of the following: the taxpayer’s principal place of business, a place where the taxpayer meets with patients, customers or clients in the normal course of the trade or business, or a separate structure (not attached to taxpayer’s home) used in connection with the trade or business. The requirements impose further restrictions on an employee’s use of a home office. An employee must also use the home office for the convenience of the employer and the employee cannot rent the home office to the employer. Exclusive use requires use of a specific room or separately identifiable space for business purposes only. If the home office is used for some other purpose, it will not qualify for the home-office deduction. Exceptions apply for
