The home office deduction is available for homeowners and renters, and applies to all types of homes. There are two basic requirements to qualify for the home office deduction:
Regular and exclusive use. A part of your home must be regularly and exclusively used for conducting business.
For example, if you’re a mechanic working out of your garage, your office is the garage.
Principal place of your business. If you conduct business outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction.
For example, if you hold meetings with clients about their vehicles in your home, you can deduct your expenses for the part of your home used exclusively and regularly for business.
You can also deduct expenses for a separate free-standing structure like an actual mechanic’s garage.
Generally, deductions for a home office are based on the percentage of your home devoted to business use. You would have to figure out the percentage of your home used devoted to your business activities. Schedule a consultation with PKM Administrative Services to find out more.
As provided by Publication 587.
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