Tax Fact: Working From Home or Home Office?

One deduction that is frequently audited and frequently incorrect is the home office deduction.  The biggest requirement to take this deduction that people are unaware of is that the office must be EXCLUSIVELY for business.  Therefore, if you have a fold away bed that guests sleep on, store clothes or Christmas decorations in the closet, or even if your kids use the computer in the office to check facebook – you cannot deduct any of the home office expense.  This is not a deduction that is done on a percentage usage basis, it is either an exclusive home office or does not qualify for any of the deduction.  In the end, this is a very high standard and merely working from home is not going to meet the requirements.

Contact us at Hone Maxwell LLP if you have questions or if your home office is being audited.  Also,  you can follow us on twitter @HMLLPTax or facebook at for more tax tips and the latest updates on tax news.

Disclaimer: Hone Maxwell LLP articles and blogs are not intended as legal advice. Additional facts, facts specific to your situation or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information herein.

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