deducting home office expenses -
Posted By: Amanda on 2009-05-18
In Reply to: I believe you have to have a room dedicated - sm - XXX
For the home office expense - You would measure the amount of space you actually use to work (your desk area) and figure the percentage of that square footage to your total square footage. Then you would use that percentage of your utilities costs, etc., to count on your taxes.
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I also took home office expenses as an employee, but --
You can only get any good out of it if you are also a homeowner with a lot of mortgage interest or have a lot of medical expenses, etc., that would make it higher than the standard deduction.
home office expenses are still deductible if you are an employee - nm
x
I deduct all expenses that relate to my home office-% of utilities, taxes, repairs to that room, --s
mortgage (we do not plan to sell our house so this deduction will not affect us)as my office is used only for that purpose, internet, phone, I print out a daily schedule so paper/ink, computer repairs, pens, pencils, tape, staples, file cabinets, storge bins for tax recepts/tax returns,file folders. Anything/everything I use to do my job.
I was using mileage for another account where I pick up tapes every day, but found for me the time it took to keep track of the mileage, write it down, add it up was not worth the effort so I quit doing it this year.
deducting home use
That's fine, if you have no intention of ever selling your house. But if you do, accountants have advised NOT to do that, 'cause it lowers the amount of the sale price you'll be allowed to keep. IOW, if you sell for $150,000 and you claimed $10,000 over time on your home-office, you're only got to get $140,000 of the sale price. Uncle Sam gets the rest.
True but that is to cover the expenses like rent, office supplies, sm
manager salaries. That does not include payroll that is based on service.
A good example woould be this: You are starting a book store. You need to plan the original inventory and six months worth of expenses. If you sell that inventory, you use the money from that to buy more books. If you do not sell any at first, you can stay in business for six months while you get noticed.
With transcription or any service business, you need enough in the bank to cover the same expenses, those that can keep you afloat while building your client base. However, you only hire more people as you get more customers. The payroll does not figure into the 6 months as it is based on what you provide, whereas the 6 months takes into account what it takes to get it going even if you do not have 1 employee.
Very, very few companies can have $800,000 lying around. If they did, they probably would need to invest it in equipment or spend it in other ways or the IRS would consider it profit and tax the heck out of it!
WORK-AT-HOME EXPENSES JUST AS MUCH - sm
as if I were working outside the home, if not more. The only thing I would spend money on an outside job would be the $4.00 daily bus fare. I have more than enough clothes for work, no problem there, maybe lunch or can brown-bag. The company pays the office space, light, electricity, internet, cable, AIR CONDITIONING in summer (imp.)
On the other hand, even as an employee, I am not reimbursed for my high-speed, HIGH-COST cable/DSL/telephone I need to make these few cents a line, electric costs, lights, AC BILL JUMPS WHEN SITTING AT PC ALL DAY IN SUMMER, buy my own office supplies, books, references.
Just another mind sc---ing they give you by telling you it's cheaper to work at home. (I have no kids).  
Any help on form 8829*Expenses for Business Use of your Home would be greatly
Hi All,
I was a statutory employee last year but not now. I usually do my own taxes but am having trouble with form 8829 and am not sure if the accountant can squeeze me in at this late date. Thought I would try here first for help. I use my den exclusively for work (almost) and am going to take this 7% of our home as a business expense.
Under Part II... Lines 10 and 11. Deductible mortgage interest and real estate taxes...I am going to take the entire amount on schedule A, so, hopefully, do not have to enter anything here.
line 17. Insurance. Are we allowed to take a portion of our homeowners insurance as a deduction? I have no separate business insurance.
Line 19. Utilities. I know I can take 7% of my electric, gas, water, garbage (I think), but what about phones? We have both cell and regular phone. When I call, I use the regular phone for toll free numbers, but the cell phone to my boss who does not have a toll free #.
Then, I need to find the value of my home for Part III. I guess I will check home sales in the neighborhood and go by that.
Geez..sorry for sounding like such a dummy. I can do all the other...capital gains, etc, just not sure what is allowed for home expenses.
As I say, I will try to get in to the accountant, but any advise for any of this form would be greatly appreciated. I cannot complete schedule A until I have my Profit or Loss done, which I cannot complete until I do this form.
Thanks.
Office politics. That is why I enjoy working at home. In the office,
people are in other people business. Just mind your own business.
at home vs office - i am in office
well, I really was referring to the MONSTER MANAGER that I have, who has her favorites here, and she assigns them the easy doctors who say the same thing over and over, you know. I have to do something. I am losing my SELF at this point, with no church and no family. The stuff on here about running out of work, my lack of computer savvy, all has me just frozen. MOre about in-office. Do you have little habits like talking out loud to the dr? Someone will complain about you. Do you ever say a cussword? Someone will complain. Do you ever sigh? Complaints. About age - I was offered 2 trans. positoins in San Diego before I came here. I had gone to a seminar about how to look for work over age 55, had revamped my resume and my "presenting" self, and it made all the difference. Things are way different than they were evern 10 years ago, you will be judged by someone younger than you, but in this line of work they do appreciate experience and reliability. And the computer doesn't care if you're pretty. It's not your age unless you are sickly. Don't give up!! if that's what you want.
If you had your very own office at home,
How would you decorate it? Anything specific you'd get? Wall color? Flooring? Curtains? Light fixture? Any feng shui motivational tips on color or spacing? It's your fantasy here, so let it out.
Where is your home office?
Mine is in my dining room. I have my computer on a desk in the corner of my formal dining room. I am thinking of moving it to a bedroom for less traffic and noise. I am curious - where is your home office and is it working for you?
Your home office
Do you have a room in your house that is solely dedicated to your work space, or do you work in another room that actually has another purpose as well (such as a bedroom)? If you have a multi-use room, do you feel that you have enough space to do your work efficiently?
You want Office XP pro or home at least
I just bought a new Dell and they didnt give me Word and told me something similar about works. I blew a gasket and then offered to return the computer since they didnt see fit to include the program as promised and they very quickly changed their tune and sent me Office XP Pro for no charge.
so stick to your guns and have them give you a copy when you buy your computer.
home office ?
I plan to use TurboTax Small Business this year since many of you seem to be satisfied with it. I will take a home office since I work exclusively at home as an IC. Have any of you had any problems with the IRS and taking a home office ? I have not taken one in the past because they said I could not even receive personal e-mail or surf the web if I did so in my office. I use the same e-mail for work and personal so I don't have to toggle between two different e-mail accounts. Besides, I only have one computer so would have to receive personal business on that computer even if separate accounts. I hope they change some of these ridiculous rules since I have no other place to work and have to use my own electricity, internet, etc that is unreimbursed by the company I work for. I use high-speed internet (required) also for work. Is this just lumped in with utilities? Last year I was an employee, so that is why I have so many questions (IC). Thanks in advance !
home office
My tax woman told me years ago that if I did not have a dedicated room, I could figure the amount of space -- say your computer and the usual thousand or so reference books, paper, storage, printer, file cabinets, plus the phone bill, or anything else like cleaning bills for a person or supplies -- as a percentage of the square footage of home. Deduction is the percentage. IMPORTANT: Good friend is a tax attorney, and he tells me it drives HIM nuts because the IRS changes the rules every year. So, be sure to get the most up-to-date regulations from the IRS, themselves. After all, where do the CPAs get their info? Rosie
I have my own decorated home office
And I LOVE it. Husband just painted it a sunny yellow not too long ago for me and I totally redecorated with a corner desk with hutch that I bought that is situated where I have a great view out my window to our front yard and road. My office is all done in a tropical theme, with a cute tropical valance and bamboo shade on my window. I have a wicker chair and trunk, tropical hanging greenery basket hanging from my ceiling, decorative shell ceiling hanger, a big palm tree sitting in a corner, 3 piece palm/mirror wall hanging, a live bamboo plant on the top shelf of my desk, palm tree designed vase and two big candle-holders. I also have a cute table top palm tree lamp.
I absolutely love my office and everyone that enters does as well. :D I spend SO much time in here I wanted it bright, cheery and something I would enjoy - and that I do. :D I feel very lucky.
I have a patriotic home office and
many houseplants.
Reasons for home office
I too have home office for tax purposes. Also, with friends and family knowing I work in an office at home, they seem to take my job more seriously. I am not just sitting at the dining room table "playing" at the computer.
Can you take home office deduction if you are sm
an employee and how would one guestimate if they would qualify? Looking into this option this year.
Home office deduction
No, but unreimbursed work-related expenses may be deduced on Schedule A.
nix the home office deduction
If you plan on selling your house later on. The deductions you claimed in previous years will be lost when you try to sell. So, if you were planning on selling for $150,000, but you claimed $500 a year in home-office deductions, per year, over ten years, that's $5000 you'll lose out at the end.
home office tax question
Doing taxes. To measure the square feet of my my home office, which is 10 x 12, do I just multiply, which would give me 120 square feet? Thank you!
My IC home office deductions came to only sm
$1100 because I own my house outright and, like you, have no real expenses because I work at home off the Internet. My health insurance premiums are low because it's lousy insurance.
People with high mortgages will have a higher deduction based on that. They may travel each day to get their work, etc. Every person's situation is different.
I think you did okay!
BTW, if anyone uses H&R Block, I strongly urge you to get the Peace of Mind benefit for $27. Mine came in handy for 2004 when the preparer made a big, big mistake caught by the IRS (I'm going to end up getting a refund of what the preparer said I owed in 2004!!!) This may be my last year with the blockheads, though. I should say I've gotten excellent service in the last 25 years, except for that one preparer last year and Block messing up on its own tax preparation.
home office and interruptions
I work out of my home doing medical transcription and have for quite some time. I love it except for the interruptions! I can't seem to get into the "zone" because of it and my production is down. Here is an example of what I find hard to deal with: Phone calls, contractors working on the house (one-time thing but still..), husband running the microwave (can't hear my voice files), husband in an out of the house on his days off, husband mowing the lawn right outside my office window. You get the picture. I have thought of moving my office to an upstairs bedroom but I really don't know if I would be gaining that much for all the trouble. A sound proof room would be nice!
I'm very discouraged right now. I would like to earn more money but it seems like an uphill battle! I have a hard time concentrating as it is (probably menopausal) and after so many interruptions in a day I feel like throwing in the towel!
How can I set up boundaries and keep them in place? Any suggestions would be welcomed!
home office location-sm
I will take another look at another location for my office but I do like it where it is because it is handy for me (when there is no visitors), convenient to the kitchen, bathroom (I only have1), and I can start the evening meal and still work, etc. Why can't anything be easy?
Work in office and home
The office provided me with software in order to hook up to the office over my DSL line. Just connect to the company's software and the computer works as if I was in the office exactly the same way. And anyone in the office can see what I have typed instantly! I love it! I would much prefer working at home than at the office however!!
Home Office Deduction
I rent my apartment. I have a home office, which is a room used soley for the purpose of an office, which is the restriction, cannot be part of living room, etc. I deduct portion of rent, all supplies, telephone, cell phone, electric, gas, and oil heat. I don't think your name has to be on the lease, just that you live there and use that room solely as an office. Also, if you travel to and from your job you can deduct mileage, oh and internet connection, which I use mainly for work. Hope that helps you.
Home Office vs In-House
What about transcription done in-house in an office or dept. where there is high traffic from MDs to janitors?
My dog watches me type and horror of all horrors, I usually have the dictation on speaker phone.
home office lighting
 Any advice about the new full spectrum lighting that supposedly resembles daylight? I rent my house, so can't install ceiling fixtures; can only use floor lamps and desk lamps. I also have pretty severe seasonal affective disorder and need as much light as I can get here in the gray midwest. The regular (incandescent) lights I've been using put off way too much heat in the summer and really don't provide good light in the winter. The compact flourescent bulbs don't seem to be bright enough. I'm thinking of trying the BlueMax full spectrum line. Any experience from you guys out there?
home office lighting
Thanks! I checked out the website and have emailed them for info. 
Working from home and not going to the office
I work for a local hospital and I have worked from home for 20 years now.
I would never never go back to an office setting unless there no other at-home jobs were out there.
I have a separate office and can watch my house from thieves, throw a load of laundry in, put supper on early, etc. I do take my two 15 minute breaks and 30 minutes for lunch just like I am in the office. If I need to run a short errand I save my breaks and lunch and combine the two and have an hour to get back.
I have three grown children but I still get phone calls all day and have a separate phone line for them if they need me and screen other calls on regular phone line.
You just have to learn to kind of pace yourself. I do sometimes type in my PJs but not too often because my husband runs his business from our home and Fedex and UPS come here all of the time.
Just set a space aside if you can from the other part of the house. I try to stick to a rule for everyone "if they see my door closed to my office, then they try not to bother me unless it is absolute necessary."
You will love it if you ever try it.I really do not miss the office and its politics.
Sometimes being at home we home MTs do not get the necessary information like we should have. Also I can count part of one phone line and my office space and books and whatever it takes to do my job on income tax. Hope this helps. I do not think that you would regret it.
Home Office Deduction
I have 2 jobs, one as an employee and one as an IC. I was living in a house with a separate room for an office. I have now moved to an apartment. Will I still be able to deduct some portion of my rent and utilities if I don't have a separate office? I would still be able to deduct office supplies and a percentage of internet and cell phone charges, correct? Thanks in advance for your advice.
Another problem with home office deduction
It has to be exclusive use, so you can't take it if you use the area for other activities than strictly work. Also, I did the depreciation thing with my home and it can come back to bite you if you sell the house and make a profit.
In-office work is different than working at home. That's just the way it is. If it seems too
rigid to you, maybe you should stick to working for the nationals.
Working at home is harder than in office
Because we are our own housekeeping, tech support, errand runner, no cafeteria, ect. I have no idea why they are passing around this WAHM myth. I don't understand the savings idea either because our utility bills are higher. In an office you get paid 15 min breaks 2x a shift too. You are also paid for all the stuff you deal with that you have to deal with to work. Like talking to supervisor, sending an email, reporting a problem, ect.
Slums of Calcutta home office :)
aren't ya just tempted to send em a pic of one of the starving children in Africa for your photo and the slums of Calcutta for your home office? :) I bet that would get a rise out of em.
tax return-home office credit
Don't you claim a home office on your tax return. I claim a home office and I always get a huge refund at least when I was working as an employee MT and not an IC. But I can still claim my home office and should not have too pay much but no refund either.
deducting for errors
A great deal of companies deduct now, and every one I ever worked for did. Let me tell you why we have to do that. It costs a great deal of money to edit/proof reports. If you make 8 cpl and the company only gets 12 cpl gross, that leaves very little. As editors, we spend a lot of time taking the time to explain why something is wrong, give examples, explain what the words mean, send out countless emails asking MTs to be more careful, to spellcheck, to at least do a quick read of their documents before they send and it just doesn't work. The only way we can get their attention is to put something in place that will.
Nobody is talking about deducting sm
health insurance premiums as an employee - as an IC you are self-employed and is 100% deductible. Pull up the sched C on the IRS website. Not worried about being audited because we were audited in 2001 and I was deducting 100% then and it was no problem.
"close" your home office before you sell your house...sm
then you don't have to do anything with the tax depreciation, etc.
I started too but home office got moved to bedroom. sm.
Now have to use earphones when husband is sleeping. I actually prefer the earphones just because my speakers weren't the best but it worked well the other way too.
Question on Income Taxes and Home Office
I need some input, please, on our tax situation. I moved to a new state and am having a new tax guy this year. I always declare my home office and a percentage of my utilities - have done so for 10+ years. This new tax guy said that my home office deductions won't matter, as they aren't higher than the standard deduction we are allowed as a married couple, and he can't believe I have never just filed a fast simple tax form without itemizing. My old tax guy never said a word - he would just get all my home office figures for me each year and said he "entered them" on my taxes. He also charged me around $350 to "itemize" each year, just for these home office figures. They are always about $3000 a year total. So now it seems I've been throwing my $$ out the window with my old tax guy? I always thought our home office deductions were able to be written off, so to speak, separate from that individual standard deduction. So, either my new tax guy doesn't know what he's talking about, or my old guy didn't. I have a feeling the new guy is right, though, the way he explained it. Does our home office deduction have to be more than the regular old standard deduction? Or does our home office cost count separately on taxes? Thanks for any help, as I don't want to hire a THIRD tax guy to check the other two. Thank goodness I never did Turbo Tax - I'd be even more lost.
Any advice on the best anti-virus for home office??
I've got Norton 360 installed on my PC and kept getting a popup all day yesterday that said my PC was infected and that I should click "here" to download Personal Antivirus. Yeah right! I ran a Norton scan and it said my PC was clean, but this popup box came up over and over to the point, I had to call Dell because I couldn't download software from their site.
Anyway, I finally downloaded Malwarebytes (free version) and it found and removed 12 Trojans!!!
I'm definitely going to keep the Malwarebytes, but need a really good anti-virus. I've done my research, but have read good and bad about all of them. AVG 8.0 didn't have the good reviews that the 7.5 had, but I found out last night that AVG 8.5 is now out. Anyone use it?
Norton sucks! As soon as I find a decent AV program, it's gonesky!
Thanks!
Editing at home is tough. No comparison to the office, and much, much harder
than transcribing at home, especially with kids. Wish I could help, but I can totally sympathize with you!
I have my very own very small office at home.. It's decorated in lighthouses and serene
r
can you take part of the water bill under the home office deduction? (nm)
x
"close" your home office before you sell your house and you will have no problem..nm
x
My CPA deducts the square footage of my home office and has for 12 years. HTH..nm
x
Yes, all utilities, garbage pick-up, home repoairs involving your office, etc
:+
Check with your tax person for certainty but I have a room solely used for my home office and I even
:)
deduct everything you can think of, electricity, phone, home office if you chose to, supplies, inter
you get the picture. I don't do the home office deduction though because we keep saying we are going to build on a lot we have and things get screwed up with taxes due to this, something with depreciation, not really sure, know someone who had this problem though, owed a lot back. When we do move, then I will take it since I know it won't be an issue then. I write off about $2-$3K a year which helps some. Was paying quartly but have not done it in 2 years as I usually don't owe more than $1200 and my husband has extra taken out of his pay, so that has always, so far, taken care of any taxes I have "owed". -- Check out the IRS website they have plenty of info on the subject.
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