Starting Your Business/Keeping Tax Records
What are Business Expenses
Home Office/Business Use of Your Home
New rules make it easier for your home office to
qualify as your principal place of business. See Principal
Place of Business.
To deduct expenses related to the business use of part of your home,
you must meet specific requirements. Even then, your deduction may be limited.
This section describes the tests that you must meet to qualify
for the deduction. Use this section, along with Figure
A, to decide if you can deduct expenses for the business
use of your home.
To qualify to claim expenses for the business use of your home, you
must meet the following tests.
1. Your use must be:
A. Exclusive
(however, see Exceptions to Exclusive Use),
B. Regular,
C. For your
trade or business, AND
2. The business part of your home must be one of the
following:
A. Your principal
place of business for your trade or business, or
B. A
place of business where you meet or deal with patients, clients,
or customers in the normal course of your trade or business,
or
C. A separate
structure (not attached to your home) that you use in
connection with your trade or business.
Figuring
the Deduction
Deducting
Expenses
Where
to Deduct
Worksheet
to Figure the Deduction
Important References
Publication
587
Business Use of Your Home
Form
8829
Expenses for Business Use of your Home
Instructions
for Form 8829
Form
1040 Schedule C
Profit or Loss from Business