Here is a rundown of ten things you need to keep in mind to make working from home a success.
1. Set aside a specific place exclusively for work. You’ll be able to deduct it from your taxes and it will help you psychologically. As Richard Eisenberg wrote in Secrets of Claiming a Home-Office Deduction, although an estimated 26 million Americans have home offices, just 3.4 million taxpayers claim home-office deductions. Eisenberg notes, and, I agree, that many people with home offices skip the tax breaks because they’re worried the write-offs will spark a tax audit. That’s not really the case these days. But you must file Form 8829, Expenses for Business Use of Your Home. You can read all the home office rules in IRS Publication 587.
In general, to write-off home-office outlays, you must use the “area” for work only and on a regular, or constant basis, either…
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