Do you have a home office?  Do you know if it qualifies for the home office deduction?

The IRS has actually relaxed it’s position on home office in the last few years, so you may qualify, even if you didn’t previously.

To qualify for the home office deduction, your home office must:

  1. Be your principal place of business, or
  2. Be used to meet clients, customers or patients, or
  3. Be a separate structure not attached to your home.

Most solo professionals have their home office in their home, so we’ll focus on the first two requirements:

Meeting clients, customers and patients is pretty self explanatory.  If you use your home office to meet with clients, you qualify.

Place of business is a little harder to define.  Basically, you have to use your home office regularly and exclusively for management and administrative duties of your business, and you must not have another location where these activities can be conducted.

Still not sure if your home office qualifies?  Check out IRS Publication 587 – Business Use of Your Home, or the article The Home Office Tax Deduction.

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