Home Office Deduction Not Only for Office Space
There is a lot of talk about the home office and what it can be used for. A lot of people (like me) don’t take advantage of it, either because they don’t have an exclusive place set aside for business in their homes, or for some other reason. However, something that is frequently overlooked is that the home office deduction doesn’t necessarily apply just to office space.
For example, say you own a company that sells KWA airsoft guns online. When you receive an order for an airsoft gun, you pack and ship the order — from your garage, where you store the guns.
Now, even if the computer you use for your business is in another place, and the area isn’t exclusively used for business so isn’t applicable for the home office, if you use your garage only for your business (or at least that part of it only for your business) you can claim that under the home office deduction — or at least, so I understand. It is, as always, best to check with a tax lawyer or accountant for sure before making any changes to the way you file your taxes.
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7 Responses to “Home Office Deduction Not Only for Office Space”
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Good advice. There are so many things like this that most people don’t know about. Kind of makes you wonder what other deductions you might not be aware of!
That CNN article is really interesting. I’ve read before that 2009 will be the year of the 1099 — with traditional job opportunities less available, a lot of people are figuring out ways to make a living at home. It’ll be interesting to see how that further affects the economy.
Home office deductions sound really complicated. Unfortunately in my small space, I don’t have a separate room that I can use for a home office. My computer is in my bedroom, which means I can’t claim home office space! Doesn’t really seem fair.
I would say that if you conduct any kind of business out of your home, you should definitely consult with a tax attorney or an accountant. There might be other deductions you quality for — or other practices to avoid that could get you into trouble.
That’s interesting that the home office deduction isn’t the red flag for the IRS that it used to be. It’s so common these days. I know lots of people who are making a living out of their homes!
Now is the perfect opportunity to try those home-based business ventures. If you know how to use SEM and social media to market yourself, you can succeed. It’s a lot easier than it was just a few years ago.
That article says you should devote 25 percent of your square footage to a home office or work space — that seems like a lot! I wonder if it’s really worth it to claim the deduction if you just have a small home office.