Accepted Answer

If you use a portion of your home for business purposes, you may be able to take a home office deduction.

Expenses that you may be able to deduct for business use of the home may include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting and repairs.

You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively:

• As your principal place of business for any trade or business
• As a place to meet or deal with your patients, clients or customers in the normal course of your trade or business

Generally, the amount you can deduct depends on the percentage of your home that you used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.

 

As you are an employee, you have additional requirements to meet. The regular and exclusive business use must be for the convenience of your employer. - as your employer doesn't provide the working space - that requirement is met.

 

Deductions will be calculated on the form 2106 - http://www.irs.gov/pub/irs-pdf/f2106.pdf

and reported on the schedule A - http://www.irs.gov/pub/irs-pdf/f1040sab.pdf - line 21 - subject of 2% floor limitation.

 

For more information see IRS Publication 587, Business Use of Your Home - http://www.irs.gov/pub/irs-pdf/p587.pdf

 

Please let me know if you need help with reporting.

 

Expert:	Lev
Pos. Feedback:	99.1 %
Accepts:	1001
Answered:	3/12/2009

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Personal Investment, Tax Preparation