Home work area The majority must be el salvador phone number library devoted to doing business.
Also, you should have no alternative workspace. That means no external office or coworking space from which you run your business.
You have two options for calculating the home office deduction: the simplified method and the regular method. Unsurprisingly, one is easier than the other.
Using the simplified method
you deduct $5 per square foot of your home used as business property, up to a maximum of 300 square feet.
To use the regular method, you calculate the percentage of your home’s square footage that you use for business, then apply that percentage to your home using bing for a competitive advantage expenses—rent or mortgage interest, property taxes, electricity, heat, water, and anything else that makes it possible to occupy your home.
For example, if you use 10% of your home’s square footage for business, you can deduct 10% of your mortgage interest on your tax return.
To use the regular method
report expenses on Form 8829. To germany cell number use the simplified method, fill out the appropriate worksheet on Schedule C of Form 1040.