An increasing number of people are working from home, from self-employed workers to those who work remotely at their house. What some people don’t know is that there are several potential tax benefits to working from home.
The Home Office Deduction
Perhaps the biggest deduction you can possibly enjoy is that of the home office deduction, which allows you to deduct expenses related to maintaining your home office from your total taxable income. Keep in mind, however, that there are some restrictions in place when it comes to deducting a space as a home office. Specifically, the space must be used as a dedicated office; this means you cannot claim a living room or a bedroom that just so happens to contain your work desk.
Just as you can write off depreciation on your home, you can also write off depreciation on other items related to your home office and work expenses. This is especially true if you use expensive equipment to work from home. Any tax software can help you calculate how much you can safely write off for depreciation.
Home Expense Deductions
In addition to writing off the portion of your mortgage that’s dedicated to maintaining your home office, you may also be able to write off portions of your heating, cooling, electricity, and other utility bills that go towards your home office. The same applies to any dedicated business phone lines, portions of your Internet service, and similar expenses.
Office Supply Deductions
If you spend money on supplies specifically for your home office (ink, paper, pens, etc.), you may also be able to deduct these from your taxable income. Keep in mind, however, that you will have to itemize in order to take this deduction over the standard deduction.
Mileage and Travel Write-Offs
In some cases, travel expenses (such as mileage traveled from your home office to meet a client) can also be tax deductible, as can business lunches and similar expenses.
Looking for real estate in Greenville where you can enjoy your own dedicated home office? Anderson Place and Village at Greater Sullivan are both great places to start. Each development has several floorplans to choose from, all of which have a third bedroom that could easily be turned into an office! For more help with your Greenville real estate needs, contact The Parker Group!