Home Office Deductions: Expenses That May Be Deducted

Posted by Dave Dunn on February 4, 2008 | 0 Comments

Tags: Samarak News, Small Business, Accounting

If you use part of your home for business, then you might qualify for a home office deduction. For some questions designed to help you determine if you qualify, see my previous blog titled Home Office Deductions: Do You Qualify. If you do qualify, then you may deduct portions of the following home expenses:

• real estate taxes
• mortgage interest
• rent
• utilities
• insurance
• painting and repairs
• security system
• depreciation

To calculate the amount you can deduct, either:

• divide the square footage of your office space by the square footage of your house to obtain the percent of your house which your office space accounts for, and then multiply this percent by your expenses, or
• if the rooms in your house are all approximately equal in size, then simply divide the number of rooms used for your business by the number of rooms in your house.

Finally, more information can be found in Publication 587, Business Use of Your Home.