Does your home double as an office? If so, many options exist for taking legal advantage of existing tax codes. Recent changes in the law benefit workers that use the home as an administrative base even if actual ‘work’ is done outside of the home.
– Document, document, document. Record all deductible items including: computers, office equipment, furnishings, pro-rated utility bills, rent, telephone costs, and even homeowners insurance and association fees.
– Discus with you tax adviser the option of whether taking a depreciation option for office space is a viable option.
– Meet with your adviser on a scheduled basis. Meetings may take place quarterly, annually or more frequently, depending on your circumstances. These analysis and review meetings will help ensure that you are taking the options allowed.
The following web sites provide useful information and may help answer common questions:
– www.toolkit.cch.com, the web site of CCH Inc.,an Illinois business information service. Most other states will have similar web sites, simply use a search engine to find your location.
– www.irs.ustreas.gov, the IRS web site and download IRS Publication 587, Business Use of Your Home.
by Dion D. Shaw
Dion Shaw is the founder and owner of Homepreneurs
Disclaimer: Homepreneurs and its partners do not claim to nor represent themselves as tax or financial professionals. Each individual and situation is strongly urged to do necessary due diligence and research to determine the benefits and limits of any tax advantages.