Updated: Jun 24, 2021
If you’ve heard that a home office deduction is a red flag, that was true in the 90s but not today. Nowadays most people have a home office and it typically saves my clients $2,000-$8,000 per year - just make sure your home office isn’t used as a guest room or have a secondary purpose as well.
You can deduct one of two ways:
Use $5 per square foot of your home office
Ue the percentage of your home square footage used for business times your indirect expenses.
For example, if your home office is 100sq.ft. and your entire home is 1,000 sq.ft, then you can take 10% of the following expenses:
Total rent or mortgage interest
Renter’s or home owner’s insurance
Utilities (gas, electric, trash, water, internet, etc)
Have you been taking full advantage of all the home office deductions available to you?
Reach out if you have any questions!