HelloCustomer Thank you for coming to Just Answer and allowing us to help you with your tax question. A home office deduction can be taken by a self-employed person who has no other work location or an employee if the home office is used for the convenience of the employer (not the employee). In order to qualify as a home office, an area must be used regularly and exclusively for business. The IRS carefully reviews the home office deduction and even a couch in the home office can cause the IRS to determine that the area is not used exclusively for business.
The home office deduction allows you to deduct the utilities, property tax, maintenance and other standard home expenses for the area of the home used as an office. This can be a large deduction and it is a deduction that the IRS considers to be abused frequently. Two things to be wary about when taking the home office deductions is that this deduction may trigger an audit and that, if you deduct depreciation on your home as part of your home office deduction, you may have to pay recapture tax when you sell the home.
Information I have received recently from the IRS suggests that in 2009, the home office deduction will be standardized (an amount I have heard is $1500 for every home office) and the IRS may not be as stringent about the rules. You may want to wait until the IRS sends out more information about these changes, before deciding whether to take the home office deduction.
I hope this information answers your questions. Please let me know if you need more information.
Sure,Customer That will be great. I'll be looking for your questions. Thanks for coming to Just Answer.
Thanks. I'll be waiting for them.