office-in-home Archives - Blau Company Accounting & Tax Preparation

Can I deduct my home computer?

The deductibility of the cost of buying and operating a home computer, including related equipment such as printers, drives, scanners, modems, etc., depends on how you use the computer. Strictly personal use. As you might guess, you get no tax deduction where you use the computer for entertainment, education, avocation, hobbies, and other personal purposes. For your employer's work. You can take an expense deduction under a special Code election the year you place in service a home computer you pay for, plus deduct accelerated depreciation over 5 tax years, plus deduct the operating expenses, if the computer: (a) is [...]

Aaron Blau, EA, CPA2016-10-27T16:54:57-07:00January 30th, 2015|Business Tax, Personal Tax|Comments Off

A Simplified Home Office Deduction

Do you work at home or have a home-based business? If so, you should be aware that the IRS has created a simpler option for calculating the deduction for the business use of your home. The new option makes recordkeeping easier because, instead of maintaining records of specific home office expenses, you can use a standard rate per square foot. The rate is $5 per square foot (up to a maximum of 300 sq. feet or $1,500) for qualifying business use space in place of taking a pro rata percentage of items such as mortgage interest, taxes and repairs. Keep [...]

Aaron Blau, EA, CPA2016-10-27T16:54:57-07:00November 20th, 2014|Business Tax|Comments Off

The Simplified Option for the Home Office Deduction: Is it Right for You?

WASHINGTON, DC, (February 10, 2014) The IRS has announced a new, simplified method for determining the in-home office deduction that doesn’t require extensive record keeping, and a lot of people are looking forward to giving it a try. Sure, it’s easier than using the time-consuming “actual expense method” to determine the amount you can deduct for the business use of your home, but is it right for you? Qualified business use of a portion of the home generally means: • Exclusive and regular use as the main place where you conduct your business, or meet with customers, clients or patients. [...]

Aaron Blau, EA, CPA2016-10-27T16:55:00-07:00February 18th, 2014|Business Tax, Personal Tax|Comments Off

Template: Deducting Office-In-Home

Rules for the Deduction of Home Office Expenses In order to qualify as expenses, your office must be your principal place of business and used regularly and exclusively. Under IRC §280(A)(c), a home office qualifies as a principal place of business if the office is being used to conduct administrative or management activities and there is no other fixed location where the taxpayer conducts substantial administration or management activities. Activities that are administrative or managerial in nature include billing customers, clients or patients, keeping books and records (accounting), ordering supplies, setting up appointments, and forwarding orders or written reports. Exclusive [...]

Aaron Blau, EA, CPA2016-10-27T16:55:00-07:00November 29th, 2013|Business Tax|Comments Off

Office at home for Non-telecommuting Employees

Convenience of the employer requirement. For employees such as yourself, the first—and most significant—obstacle to qualifying for home office deductions is the convenience of the employer requirement. An employee may deduct home office expenses only if the home office is maintained for the convenience of their employer. This requirement is satisfied if: you maintain your home office as a condition of employment—in other words, if your employer specifically requires you to maintain the home office and work there; your home office is necessary for the functioning of your employer's business; or your home office is necessary to allow you to perform [...]

Aaron Blau, EA, CPA2016-10-27T16:55:01-07:00July 15th, 2013|Personal Tax|Comments Off