I work from home full time for the benefit
of my employer. I have not taken the home office deduction
in the past as I lived in a studio apartment without a separate office space. I am purchasing a new condo, and considering using one of the rooms as an exclusive home office or for another purpose such as a dining room or guest room.
The square feet of the room accounts for 10% of the total unit.
I assume there would be no point in taking the deduction in the first year, since I would have only lived in the unit for 1.5 months.
I plan on purchasing $2,000 worth of office furniture (Can delay this to January 1, 2013)
Approximately what kind of tax
benefit would I see by using this room as an exclusive office based on my financial information?
AGI: 140,000 /yearMortgage Interest
: 20,000 /year
Taxes: 8,000 /year
Utilities (gas&electric): 600 /year
HOA: 3600 / year ($800 water&sewer, garbage $308, $80 gas&electric, $520 maintenance, $890 insurance, $1002 Reserves for roof/painting)Depreciation
Unreimbursed Office Supplies < 200 /year