When Can You Write Off Your Home Office?

If you own a home business and do your work on the kitchen table, sorry, you probably cant take any deductions.  They IRS is very specific as to what constitutes a home office.  There are three words you need to remember:  exclusive, regular, and principal.

Exclusive - The part of your home used for business must be exclusively for business.  Example:  You run a a home business from a spare bedroom.  And you also email your PTA committee, share the office space with a spouse and sometimes catch up on your favorite show from that bedroom.  Because the room isn't used exclusively for business, you won't be able to write it off.

Regular - The part of your home used for business must be used on a regular basis.  Example:  You rent and office or studio downtown.  Once in a while you bring home a client to view samples.  This does not constitute regular use of the room.

Principal  - Your home office, studio, or workshop must be your principal place of business.  Example:  You have a dog-walking business.  But you've dedicated your den just for bookkeeping for your business.  You can write off this space even though most of your business occurs at parks and fire hydrants.  :)

I hope these tips were helpful! 

The Moore Team

480-545-1043

www.tonymoore.com