Tax Tip: Home office deduction

Uticaod.com

Whether you are self employed or an employee, if you use part of your home for business purposes you might be able to deduct expenses for the business use of your home. This can be an audit red flag to the IRS, but if you meet the following specific requirements you can save on your taxes: * You must regularly use part of your home “exclusively” for conducting business. Having a separate room (or even part of a room) designated for business is wise. Conducting business at the kitchen table or from the living room couch won’t fly.* Prove your home office is the principal place of business. Conducting the majority or all of your administrative or management activities from your home office instead of another location would meet that qualification.