There are two types of expenses deductible home office, direct and indirect costs. Office expenses of the home real address space work, including repairs and painting in your home office. Office expenses indirectly related home office home inside and are only partially deductible. Utilities and mortgage rates are examples of indirect costs. For more information on how to take these deductions, see Home Office deduction FAQ.
Two direct and indirect costs, the home office can be deducted:
Reparations (direct and indirect) - Repairs are done within your home office is the direct cost and are fully deductible.
For example, if you paint the walls of his office, the cost of the painting are a direct cost. However, you can not deduct the cost of your own work. If you pay someone to paint, you can also deducted from their jobs as a direct cost.
Care of your heating load is indirect. While the oven heats up your office at home is only the proportion of business use-deductible.
Some repairs, such as replacing the roof, could be considered improvements to your home, in this case, you can not deduct here. But you can by their inclusion in the adjusted basis of your home that are used to calculate the deductible depreciation. More on depreciation below.
Taxes on property (indirectly) - this time not to stop. If you deduct a portion of their property tax as part of the home office deduction, you must include in Appendix A of this amount property taxes are to be reduced.
Mortgage rates (indirect) - The same mortgage rates. No deduction twice. Schedule A to deduct the amount already insurance premiums can be deducted from your income on Form 8829 mortgage not be removed.
Rent (indirectly) - Multiply your rent payments, the proportion of business use of your home.
Utilities (indirectly) - Multiply the cost of electricity, gas, garbage collection and cleaning of your share of the business use. Phone is not included in this. The first telephone line in your house is inspected for personal use and is not deductible at all. But a second line that is used exclusively for business is deductible, but should not be included in Annex C.
(Indirectly) homeowners or renters insurance - Make sure that you unplug the percentage of what presented for the fiscal year. Often premiums are paid annually, so they can cover more years.
Depreciation (indirectly) - If you own your home, you can be a deduction for depreciation of the home for business. Depreciation is an money for wear and tear on your house if you do not lose the value of the land value.
Depreciation is calculated by multiplying the adjusted from home (permanent improvements cost) or market value of your home calculated as it began, for the company, whichever is lower, will be used by the percentage of use of the company, and then another rate of the IRS provided.
Take a deduction for depreciation may be tax consequences when you sell your home later, so be sure to carefully consider whether a home office deduction is good for you. The net of amortization with many special rules complicated, see IRS Publication 587, whether you consult a tax advisor for more information.
Disclaimer
I am not a lawyer for tax preparation, accountant or tax advisor. The information presented here as a general guide. For specific questions about your own taxes, see IRS publications or consult a tax advisor.
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