| With technology making it easier than ever
for people to operate a business out of their house, many taxpayers, entrepreneurs and
small business people may be able to take a home office deduction when filing their 2009
federal tax return next year.
That’s why the Internal Revenue Service recently came
out with the five facts about the home office deduction for your members.
Here are five important things the IRS wants you to know
about claiming the home office deduction.
1. Generally, in order to claim a business deduction for
your home, you must use part of your home exclusively and regularly.
As your principal place of business, or As a place to meet
or deal with patients, clients or customers in the normal course of your business, or In
the case of a separate structure which is not attached to your home, it must be used in
connection with your trade or business
For certain storage use, rental use or daycare-facility
use, you are required to use the property regularly but not exclusively.
2. Generally, the amount you can deduct depends on the
percentage of your home that you used for business. Your deduction for certain expenses
will be limited if your gross income from your business is less than your total business
expenses.
3. There are special rules for qualified daycare providers
and for persons storing business inventory or product samples.
4. If you are self-employed, use Form 8829, Expenses for
Business Use of Your Home, to figure your home office deduction. Report the deduction on
line 30 of Schedule C, Form 1040.
5. Different rules apply to claiming the home office
deduction if you are an employee. For example, the regular and exclusive business use must
be for the convenience of your employer.
For more information see IRS Publication 587, Business Use
of Your Home, available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).
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