I am a part time realtor and a W-2 employee. I only earned $3500 in commission for 2016. Do I claim the home office for 100%? The real estate company do not have an office to work from. I am confused...
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If 100% of your self-employment income was earned with that home office, you can claim it as long as you otherwise qualify for the home office deduction. Keep in mind that in order to claim it at all, you will need to have a net profit from your self-employment income.
There are two ways to deduct home office expenses. One is using Actual Expenses and the other is the Simplified method. Which one you use depends on the amount of your expenses and the size of your office space.
The Actual Expense method uses the business use percentage of your actual costs (utilities, mortgage interest/rent, insurance, etc.) based on the square footage of your home office compared to your total home. The Simplified method is $5/sq ft up to 300 sq ft of office space.
To take a deduction for your home office, you must regularly use a portion of your home exclusively for conducting business. Also, it must be your principal place of business.
This link may also be helpful:
Can I Take the Home Office Deduction?
https://ttlc.intuit.com/replies/3302005
If you are self-employed:
https://ttlc.intuit.com/replies/4773249
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