Home Office Deduction Qualifiers and Benefits

Always consider the home office deduction qualifiers list when looking into them during the proactive tax planning stage. After all, if the IRS allows you to take a deduction for bills you already pay each month like utilities and a mortgage, why not claim the tax deduction and save some money? The home office deduction is not as huge of a deduction as cost segregation, conservation easement, energy credits, etc., but most business owners can arrange their operations to claim it.

Even the smallest of tax savings each year can really add up. Additionally, a few years ago, the IRS came up with a simplified method that eliminates most of the recordkeeping requirements and the depreciation recapture provision.

home office deduction 

Who Can Claim a Home Office Deduction?

If your ur office space takes up 20 percent of your home, that means you can deduct 20 percent of bills for allowable business operations. Small business owners who report their income and expenses on Schedule C are the people who most often claim the home office deduction. Form 8829, Expenses for Business Use of Your Home, is filed in association with Schedule C. However, the home office deduction may also be claimed by farmers filing Schedule F. Partners receiving a Schedule K-1 (1065) can also claim it. Employees who are not provided a place to work by their employers can claim the home office deduction as well.

Qualifiers List

  • Utilities (electricity, water, sewer, natural gas, propane, heating oil, trash service, security system monitoring)
  • Homeowners’ or renters’ insurance
  • Repairs and maintenance qualify. This includes items such as repairs to the home or appliances, snow removal, tree removal, carpet cleaning, HVAC maintenance, etc. However, the IRS specifically excludes lawn care as pertaining to the “whole house”.
  • Homeowners’ association dues and condo fees
  • Mortgage interest qualifies.
  • The amount you claim as a home office deduction applies to real estate taxes. People who rent instead of owning a home can use rent as a qualifier. Instead of claiming mortgage interest and real estate taxes, they claim their rent.

Recent Posts

tax planning high-net-worth

Advanced Tax Planning Strategies for High-Net-Worth Individuals 

With evolving tax codes and complex planning vehicles, the high-stakes game of tax strategy can seem daunting for even the savviest investors. However, the rewards for skillful navigation are well worth the effort. Advanced tax planning presents high-net-worth individuals and families with lucrative opportunities to actively minimize tax exposure, unlock savings and optimize wealth transfer.  

Read More »
land value calculation guide

Understanding Land Value in Cost Segregation Studies

One of the best ways to reduce the tax burden of commercial real estate is with cost segregation. If you’re ready to reap the rewards of accelerated depreciation, you’ll need to provide one essential piece of information: land value. Determining this value accurately is key to both IRS compliance and maximizing your deductions—let’s explore how

Read More »
our culture

The Road to $1 Million: How Jill Scaled the Sales Summit

When Jill Mazur saw the email announcing her induction into ETS’s vaunted million-dollar club, it marked the realization of a long-held ambition. “To hit that was amazing. It meant a lot to me to get there, to show the company that I really love what I do and I really want to help people,” she

Read More »

Contact Us