accessing . . .

accessing . . .

Home Care Library

dog-run-web-view Close Open Now icon
dog-run-latest-ipad1022 Close Open Now icon
dog-run-latest-ipad1022 Close Open Now icon
dog-run-latest-ipad1022 Close Open Now icon
dog-run-latest-ipad1022 Close Open Now icon
dog-run-latest-ipad1022 Close Open Now icon
dog-run-latest-ipad1022 Close Open Now icon

Avoiding Home Office Tax Traps


/Images/HCL-articles-small/home-office-tips.png
Tele-commuting, small-business start-up, or just a quiet place to get work done at home . . . more of us are setting up home offices. The IRS allows you to take a tax deduction for your home office, but you will want to be sure to avoid some common tax traps that can come back to bite you.
 

If you are thinking about claiming a portion of your house as a “home office” here are some things that you will want to consider:

  1. If you haven’t already done so, you should talk with a Certified Public Accountant (“CPA”). They have the training and experience to advise you about the requirements and specific record-keeping practices that you will need to follow.

  2. Claiming a home office is very likely to increase your risk of getting a audit from the IRS.

  3. Equipment that you use in your claimed home office will need to be used 100% for business purposes.

  4. You will need to keep detailed records of how you use your home office.

  5. If you have been claiming a home office deduction, and you sell your home that was your principal residence for 2 of the previous 5 years, then this could have tax consequences for your when you go to sell your home (helpful accessories: home business tax deduction books; tax computation softwares).

However, as an alternative to claiming a home office deduction, you should talk to a CPA about other ways that you can legitimately deduct expenses associated with the work that you do from your home



For example:
  1. Deducting portions of your home utility bills.

  2. Deducting the costs of supplies that you use.

  3. Deducting a portion of the cost of your rent or home mortgage interest.

Related Articles . . .

What You Need To Know About Home WI-FI
Home wireless networks are a great way of providing internet access throughout your house. The risks from wi-fi hackers are dramatically growing, and here is what you can do to protect your network from these hackers. more
Stop Paying for Electricity 'Vampires'
They are lurking in your home, and they attack while you are sleeping, when you leave . . . well basically, they attack all the time. It's the devices which continue to suck power, even when you have their switches turned off. more
Safety Tips for Electrical Outlets and Surge Protectors
According to the National Fire Protection Association, there are an average of 81,000 electrical system fires in homes every year. Here are 20 tips about electrical outlets and surge protectors to protect your family and appliances. more
Creating a Smarter Home
"Smart home" is a term that is used for devices and systems that automate your home to make managing your home easier and better. This article describes various types of smart home innovations, and how they can help you. more
free-apps