Business Use Of Home | TaxConnections

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Whether you’re self-employed or a partner, you may be able to deduct certain expenses for the part of your home that you use for business.

To deduct expenses for business use of the home, you must use part of your home as one of the following:

Exclusively on a regular basis as your principal place of business for your trade or business;
Exclusively on a regular basis as a place where you meet and deal with your patients, clients, or customers in the normal course of your trade or business;
A separate structure that’s not attached to your home used exclusively on a regular basis in connection with your trade or business;
On a regular basis for storage of inventory or product samples used in your trade or business of selling products at retail or wholesale;
For rental use; or
As a daycare facility.

Written by TaxConnections Admin | Posted in Publication 587

IRS Publication 587 covers the business use of your home and explains how to figure and claim the deduction. Publication 587 also covers special rules for daycare providers. The purpose of the publication is to provide information on figuring and claiming the deduction for business use of your home. The term “home” includes a house, apartment, condominium, mobile home, boat or similar property which provides basic living accommodations. It also includes structures on the property, such as unattached garage, studio, barn or greenhouse. However, it does not include any part of your property used exclusively as a hotel, motel, inn or similar establishment.

Qualifying for a deduction gives the requirements for qualifying to deduct expenses for the business use of your home(including special rules for storing inventory or product samples). After you determine you qualify for the deduction, figuring the deduction explains the expenses you can deduct using your actual expenses or the simplified method. The simplified method is an alternative to calculating and substantiating the actual expenses.

Where to deduct explains where a self-employed person or partner will report the deduction. This publication also includes information on the following:

– Selling a home that was used partly for business
– Deducting expenses for furniture and equipment used in your business
– Records you should keep

Business Use of Home Deductions PDF

Written by IRS | Posted in Business Use Of Home