Questions to those with a home office (tax deductions)
03-06-2012, 08:06 AM
#1
The Box
Thread Starter
Questions to those with a home office (tax deductions)
Hey guys,
I start my new job on Monday
and I will be "working from home". My company is located in Clearwater, FL so I will be working out of my home/traveling quite a bit.
A few questions to those who use a home office as a deduction:
My understanding is that I have to have a room that is solely used for the purposes of the business. It has to be free of anything but work related things, correct?
My condo is 998 sq ft + basement, my office is 150 sq ft. That means I can write off 15% of my mortgage, HOA, insurance, electric, internet, right?
Can I use my basement as a home office? I have a HUGE rec room down there and would love to have my office down there since we're expecting a little one to join the family soon and we will eventually turn that office into a baby room. My understanding is that since it's not part of the main sq ft, I can't, is that correct? I also have part of the basement unfinished, where I can probably easily add a room to be an office with some 2x4's, some dry wall, paint, carpet and some good old fashioned elbow grease.
Is there anything else I can write off or anything I'm missing? I am going to start searching this in detail, but AZ has always been so helpful, I thought I'd check in here first.
Thanks in advance!
I start my new job on Monday
and I will be "working from home". My company is located in Clearwater, FL so I will be working out of my home/traveling quite a bit.A few questions to those who use a home office as a deduction:
My understanding is that I have to have a room that is solely used for the purposes of the business. It has to be free of anything but work related things, correct?
My condo is 998 sq ft + basement, my office is 150 sq ft. That means I can write off 15% of my mortgage, HOA, insurance, electric, internet, right?
Can I use my basement as a home office? I have a HUGE rec room down there and would love to have my office down there since we're expecting a little one to join the family soon and we will eventually turn that office into a baby room. My understanding is that since it's not part of the main sq ft, I can't, is that correct? I also have part of the basement unfinished, where I can probably easily add a room to be an office with some 2x4's, some dry wall, paint, carpet and some good old fashioned elbow grease.
Is there anything else I can write off or anything I'm missing? I am going to start searching this in detail, but AZ has always been so helpful, I thought I'd check in here first.
Thanks in advance!
03-06-2012, 08:53 AM
#2
In the Mid-South meow
iTrader: (2)
Great questions. I just started working from home in 2012 and will have a dedicated office in the home we're closing on next week, so I'm eager to hear what can be deducted on next year's taxes, too. Maybe this thread would get more action if it was in the general ramblings section? I've noticed threads in this section don't see to get as many replies generally.
Oh and congrats on the new job and
on the way!!! 
Oh and congrats on the new job and
on the way!!!
03-06-2012, 08:53 PM
#4
Senior Moderator
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I would really think long and hard about claiming a deduction for a home office. It's typically a red flag for auditors.
Here's an article discussing it.
http://www.startupnation.com/busines...ness-taxes.asp
Here's an article discussing it.
http://www.startupnation.com/busines...ness-taxes.asp
03-07-2012, 08:21 AM
#5
Hey guys,
I start my new job on Monday and I will be "working from home". My company is located in Clearwater, FL so I will be working out of my home/traveling quite a bit.
A few questions to those who use a home office as a deduction:
My understanding is that I have to have a room that is solely used for the purposes of the business. It has to be free of anything but work related things, correct?
My condo is 998 sq ft + basement, my office is 150 sq ft. That means I can write off 15% of my mortgage, HOA, insurance, electric, internet, right?
Can I use my basement as a home office? I have a HUGE rec room down there and would love to have my office down there since we're expecting a little one to join the family soon and we will eventually turn that office into a baby room. My understanding is that since it's not part of the main sq ft, I can't, is that correct? I also have part of the basement unfinished, where I can probably easily add a room to be an office with some 2x4's, some dry wall, paint, carpet and some good old fashioned elbow grease.
Is there anything else I can write off or anything I'm missing? I am going to start searching this in detail, but AZ has always been so helpful, I thought I'd check in here first.
Thanks in advance!
I start my new job on Monday
and I will be "working from home". My company is located in Clearwater, FL so I will be working out of my home/traveling quite a bit.A few questions to those who use a home office as a deduction:
My understanding is that I have to have a room that is solely used for the purposes of the business. It has to be free of anything but work related things, correct?
My condo is 998 sq ft + basement, my office is 150 sq ft. That means I can write off 15% of my mortgage, HOA, insurance, electric, internet, right?
Can I use my basement as a home office? I have a HUGE rec room down there and would love to have my office down there since we're expecting a little one to join the family soon and we will eventually turn that office into a baby room. My understanding is that since it's not part of the main sq ft, I can't, is that correct? I also have part of the basement unfinished, where I can probably easily add a room to be an office with some 2x4's, some dry wall, paint, carpet and some good old fashioned elbow grease.
Is there anything else I can write off or anything I'm missing? I am going to start searching this in detail, but AZ has always been so helpful, I thought I'd check in here first.
Thanks in advance!
That said, I have been taking a Home-Office deduction since 2005. You are correct in assuming that it has to be for work only. Your percentages also seem to be accurate since your office is 15% of your total space. As far as the basement... that sounds right as well. If the square footage is not included in the main square footage, you cannot deduct it. Now, if you finish the space out and it then becomes included in your total number, that's a different story.
Also, how are you paid? W2, 1099? The answer to that will also determine if you can deduct things such as printers, ink and other supplies...
Oh, and I'm going to leave this in the sub-forums. If it's in Ramblings, you may get more BS answers then real answers. I will move it to Money & Investing though as you'll likely get more relevant answers there...
03-07-2012, 09:21 AM
#6
The Box
Thread Starter
I would really think long and hard about claiming a deduction for a home office. It's typically a red flag for auditors.
Here's an article discussing it.
http://www.startupnation.com/busines...ness-taxes.asp
Here's an article discussing it.
http://www.startupnation.com/busines...ness-taxes.asp
Before I reply, I will state that your best bet is to check with your accountant.
That said, I have been taking a Home-Office deduction since 2005. You are correct in assuming that it has to be for work only. Your percentages also seem to be accurate since your office is 15% of your total space. As far as the basement... that sounds right as well. If the square footage is not included in the main square footage, you cannot deduct it. Now, if you finish the space out and it then becomes included in your total number, that's a different story.
Also, how are you paid? W2, 1099? The answer to that will also determine if you can deduct things such as printers, ink and other supplies...
Oh, and I'm going to leave this in the sub-forums. If it's in Ramblings, you may get more BS answers then real answers. I will move it to Money & Investing though as you'll likely get more relevant answers there...
That said, I have been taking a Home-Office deduction since 2005. You are correct in assuming that it has to be for work only. Your percentages also seem to be accurate since your office is 15% of your total space. As far as the basement... that sounds right as well. If the square footage is not included in the main square footage, you cannot deduct it. Now, if you finish the space out and it then becomes included in your total number, that's a different story.
Also, how are you paid? W2, 1099? The answer to that will also determine if you can deduct things such as printers, ink and other supplies...
Oh, and I'm going to leave this in the sub-forums. If it's in Ramblings, you may get more BS answers then real answers. I will move it to Money & Investing though as you'll likely get more relevant answers there...
A friend of mine is a CPA, I am meeting with her in a couple weeks for lunch to discuss further but just wanted to get some feedback from others that have a home office.
Thanks for moving the thread
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03-07-2012, 02:15 PM
#8
I would really think long and hard about claiming a deduction for a home office. It's typically a red flag for auditors.
Here's an article discussing it.
http://www.startupnation.com/busines...ness-taxes.asp
Here's an article discussing it.
http://www.startupnation.com/busines...ness-taxes.asp
03-07-2012, 03:20 PM
#9
The Box
Thread Starter
This is what I don't like. I don't have enough room in the condo to have an office for work and an office for home.
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