The home office deduction

Fkatz

Veteran Expediter
Charter Member
Morning All, Many of you take the home office deduction that requires that the area that you use is only used for an office with NO OTHER FURNITURE BUT a, office Desk, Chair, Computer, Printer, File cabinets. Nothing else can be in that room. the home office deduction is based on the square footage of the room, and calculated by the total square footage of the home. Example: Total area of room for office is a , that is 250 Square feet, and the house is 1800 square ft. your office is 13.89% use. if you use the entering mtg. interest, taxes, utilities, and repairs, the % rate is they multiplied by that total and it would be your deduction. there is another way that you can now take 'ITS CALLED THE SAFE HARBOR METHOD." the way this is calculated it this, you have 250 Sq. ft at $5.00 per Square would be $1250.00 as a home office deduction would reduce the Audit Risk. However, does have some disadvantages since it is an alternative to calculating actual expenses, some costs related to business use of the home will no longer be deductible on Schedule C in a tax year for which the safe harbor method is used. In addition, carryovers of home office deductions from prior years are deferred to a taxable year when the safe harbor method is not used.. If you have any question regarding this home office use please do not hesitate to call or email me at the information below Franklin Katz, RTRP, ATP, PA, PB
Frank's Tax & Business Service
315 E. King St.
Kings Mountain, NC28086
Local # 704-739-4039 Toll Free# 877-857-1040
E-Mail: [email protected])
Web: Filing Services

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