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Home office deductions

DLCS

LawnSite Platinum Member
Location
Illinois
How many here claim the home office deduction on your taxes. I k now it used to be taboo to claim it. my accountant says that its quite common these days and it doesn't trigger audits like it used to. i have a dedicated offcie in my home for business but I have never claimed it. this year i'm going to owe through the nose to the government(which is good, cause I know I'm making money). Any comments?
 

Fvstringpicker

LawnSite Fanatic
It doable and many enjoy the tax benefits. Basically you allocate the indirect cost (utilities, taxes other cost of the dwelling) on sq ft. Direct cost of the office (new flooring in office, cabinets etc) are charged to the business portion. You'll be required to file form 8829. Don't make the mistake an acquaintance of mine made when he was reviewed by the IRS. He got in a conversation with the agent about his son and friends playing video games and "my spacing" on his "home office" computer.
 
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