In a gig economy, there is an important deduction for small business entrepreneurs: Your home office deduction. In general, if you work out of the home, you may use this deduction…
When the following applies:
- As your main place of business.
- As a place of business where you meet patients, clients or customers in the normal course of business.
- If the home office is in a separate, unattached structure, it must be used in connection with your business.
- As a place where you store inventory or samples and is the sole, fixed location of your business.
- If eligible, as the structure where you provide day care services as your business.
Which home expenses qualify?
- Real Estate Taxes
- Mortgage interest
- Casualty losses
- Repairs and Maintenance.
The portion of these expenses that may be deduction will be relevant to the portion of the home used solely for the business. There are special rules for different businesses and minimums to meet. Talk to your accountant or come see us at businesstaxprep.com to find the right tax professional for your business.