Tax Tips: Home Office Deductions

All that space in your home that you use to for work? You can save money on your taxes because of it.

FOX’s Linda Bell has your FOX News Radio Tax Tip:

Taking the fear out of home office deductions.

I’m Linda Bell with your FOX News Radio Tax Tip.

It’s a common belief that claiming a home office deduction will trigger an audit. Michael Chadwick, president of Chadwick Financial Advisers says it’s a valid deduction for many people and if you qualify, you should take it:

(Chadwick) “It can provide substantial tax savings for those who truly are using their home as an office.”

In order to make the cut, you must prove that you regularly use part of your home exclusively for conducting business. You must also show that you use your home as your principle place as business.

Since the 2013 tax season, it’s been easier for tax payers to determine their home business deduction. You simply subtract $5 for every square foot of your home office, a maximum of 300 square feet:

(Chadwick) “It definitely cuts down on the demands of record keeping and paperwork and what people are comfortable keeping in the event of an audit.”

For more Tax Tips, go to FOXNewsRadio.com.

I’m Linda Bell with the FOX Business Network.