Home office tax deductions

[moneysense]

If you use a portion of your house for a home office, you may be able to take some deductions. These may be taken if you are self employed or an employee for someone else.

A lot of people are afraid to take this tax break but if you can pass the exclusivity test you will be fine. The exclusivity test is one in which you determine if the space in your home you are using for a home office is used exclusively for what you do. IE: Is this space used primarily to meet patients, do accounting or just work online as a job. And that this is the only thing this designated space is used for.

Calculating the deduction is relatively easy. Just figure out how much of your home is used for office space, lets use 15% as a general guideline here. Then you can use 15% of your rent, utilities, home insurance etc as a deduction for your home office.

Always consult a tax expert for any deduction you may want to take.