If you’re self-employed and work from home, you may be entitled to home office deductions. However, you must satisfy strict rules. Eligible taxpayers can deduct direct expenses such as the costs of home office repairs. You can also deduct the indirect expenses of maintaining the office such as the allocable share of utility costs, depreciation, insurance, mortgage interest and real estate taxes. In general, you qualify for home office deductions if part of your home is used “regularly and exclusively” as your principal place of business. If your home isn’t your principal place of business, you may still be able to deduct home office expenses. Questions? We can explain more about the rules.
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