If you use part of
your home for business, you may be able to deduct expenses for the business use
of your home. The home office deduction is available for homeowners and
renters, and applies to all types of homes. There are two basic requirements
for your home to qualify as a deduction:
1.
Regular and Exclusive Use.
You
must regularly use part of your home exclusively for conducting business. For
example, if you use an extra room to run your business, you can take a home
office deduction for that extra room.
2.
Principal Place of Your Business.
You
must show that you use your home as your principal place of business. If you
conduct business at a location outside of your home, but also use your home
substantially and regularly to conduct business, you may qualify for a home
office deduction. For example, if you have in-person meetings with patients,
clients, or customers in your home in the normal course of your business, even
though you also carry on business at another location, you can deduct your
expenses for the part of your home used exclusively and regularly for business.
You can deduct expenses for a separate free-standing structure, such as a
studio, garage, or barn, if you use it exclusively and regularly for your
business. The structure does not have to be your principal place of business or
the only place where you meet patients, clients, or customers.
Generally,
deductions for a home office are based on the percentage of your home devoted
to business use. So, if you use a whole room or part of a room for conducting
your business, you need to figure out the percentage of your home devoted to
your business activities.
Additional tests for employee use. If you are
an employee and you use a part of your home for business, you may qualify for a
deduction for its business use. You must meet the tests discussed above plus:
- Your business use must be for
the convenience of your employer, and
- You must not rent any part of
your home to your employer and use the rented portion to perform services
as an employee for that employer.
If the use of the
home office is merely appropriate and helpful, you cannot deduct expenses for
the business use of your home.
Turbo Tax will walk
you through the process of adding these expenses to your tax return once you
get to the right place...
- Open the software and click
on the "Business" tab, then click continue, or "I'll choose
what I work on"
- Next, click on the "Home
Office Expense" tab under the Business Expense heading
- From here Turbo Tax will
guide you through the process of getting these expenses to their proper
place on the tax return.
I've included two screenshots to help you get your home office expense into Turbo Tax.