To deduct expenses for business use of your home:
As a general rule, you must use a part of your home regularly and exclusively for business purposes. The part of your home used for business must also be:
- Your principal place of business, or
- A place where you meet clients or customers in the normal course of business, or
- A separate structure not attached to your home. Examples could include a garage or a studio.
THat is NOT my question. I do not claim a home expense. I inputed communication expenses such as telephone. BUT the output on the return showed this as UTilities! I believe the software is defective.
Gas, electric, phone and water are the basic utilities and should show under utilities. You can claim home office expenses as long as you qualify and have a positive income. Here are some handy links to help:
Small Business and Self-Employed Tax Center - complete guide
- Publication 535, Business Expenses
- Publication 583, Starting a Business and Keeping Records
- Self-Employment Taxes
- Deducting Expenses
- Hobby or a Business.
- IRS pub 538.
- Audit Techniques Guides (ATGs)
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