Question

Home Office

Forum|Forum|5 years ago
March 25, 2021
1 reply
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I bought a home on 6/4/2020. My home has a home office. I am in sales and use my home office for work and also for a personal business venture I am trying to launch. I am wondering if I can use my home office as a deduction. I am also wondering if the money I paid to get started in the state of Texas can be used as a business expense.

RayW7

Regarding the Home Office - To qualify for the home office deduction, you must use part of your home "regularly and exclusively" for business. The space must also be your principal place of business or a place where you meet regularly with clients or patients.

You may choose to use either the simplified method or the regular method for any taxable year.

Generally, the preferred option for the Home Office Deduction is the Simplified Option. Review the link below to determine which deduction is best for you.

Highlights of the simplified option:

Standard deduction of $5 per square foot of home used for business (maximum 300 square feet).
Allowable home-related itemized deductions claimed in full on Schedule A. (For example: Mortgage interest, real estate taxes).
No home depreciation deduction or later recapture of depreciation for the years the simplified option is used.

-follow this link for additional information on Home Office deduction-

Home Office Deduction | Internal Revenue Service

Regarding Start up Costs- Start up costs are those expenses incurred in planning and setting up the business, costs you incur before you open the door.

A portion of startup and organizational costs can be expensed (written off in your first year). The remainder can be amortized (written off over a period of 15 or more years).

-follow this link for additional information on Start Up Costs-

Startup Business Tax Tips - TurboTax Tax Tips & Videos