Tracy’s Tax Tips: Home Office Deduction

Are you working from home? If so, you may be able to get some major tax savings with a home office deduction.

FOX Business Network’s Tracy Byrnes reports in “Tracy’s Tax Tips”:

With so many people working from home these days, the home office deduction can actually be a huge tax savings, that is if you qualify.

I’m Tracy Byrnes with the FOX Business Network here with Tracy’s Tax Tips.

So that home office has to be legit. That means the space must be used regularly and exclusively for business. So your office cannot also serve as a guest room or the kid’s play room. If it does, forget it.

Oh and if you already have an office at work, no chance for you either.

But if you think your home office qualifies, then figure out what percentage your office is to the rest of the house and apply that percentage to things like rent or mortgage interest, utilities like your electric bill, apply it to your insurance and repair costs all for the areas you use.

Check out IRS Publication 587 — that’s the ‘Business Use of Your Home’ for more details. And always keep all your documents.