Can I claim home office deduction?

Question

I was a contractor for 4 months last year, and I was self employed for that period of time.

I frequently worked from home (33%). My employer also provided a place for me to work in their office. ....

Can I still claim home office deduction?

Can I claim for vehicle expenses that I incurred towards commuting to work, going to user groups, trade shows?

I used my personal home computer to connect to the work to do work. and I have bought couple of books towards my business.

I have a sizable income from my contractor work. If I can not take home office or vehicle deduction, I do not have any other expenses.

Please help.

Answer 1

Either you were an employee or you were self-employed.

I. You Are An Employee

If you were employed and your employer provided you with an office, and you were not required by your employer to have an office at home for his convenience, then you cannot take the Office in Home Deduction.

Your unreimbursed employee expenses may be deducted on Schedule A using Form 2106.

Only unreimbursed vehicle expenses which were not commuting to work may be deducted.

Your books are deductible.

If you could have used the computer at the office, your Internet expense is not deductible. If you used your Internet connection for the convenience of your employer, that part of the expense is deductible.

II. You Are An Independent Contractor

If you were an independent contractor, then by the definition of independent contractor, you are are free to have an office in your home. In this case, you may be able to take the Office in Home Deduction and deduct those expenses using Form 8829, which transfers the total deduction to Schedule C.

Also deducted on Schedule C:

All of your mileage related to the contractor position, including transportation from your home office to any work site.

Your books and a fraction of the Internet charges.

Answer 2

Frequently working at home doesn't get it. You have to use a portion of your home regularly and exclusively as your main place of business. Since you worked his office more than at home, his offiice would have been your main place of business. And if for example you used that same computer, in the same place, for personal Internet use, or the computer desk was in the corner of a room that sometimes has other uses, you'd fail the exclusive test. So no, you aren't eligible for a home office deduction.

Mileage commuting to his office, your main place of business, isn't deductible, but mileage to user groups and trade shows is.

Doesn't sound like your computer would be deductible, but the books would be if you bought them for your business.

Answer 3

You'll have to check with a tax advisor to be sure, but it's my understanding from my CPA/CFP that in order to declare anything like a computer or a vehicle as a business expense it has to be used for business 75% of the time or more. My wife and I had the same discussion with our CPA/CFP last year because my wife is a freelance notary (she works with mortgage companies that E-mail her closing documents, she prints them out, takes them to the customer's home, the customer signs them and she notarizes them), and we were told we could write off the printer, paper, and toner as business expenses but not the computer.

Answer 4

candid answer?
u Can deduct ur home expense that relate to ur biz . Do Not suggest u do that unless u like an audit and have VERY good Records. IRS redFlag (home deduction).
vehcile use is easier deduction just fill out the right forms and have GOOD records.
get 2 good CPA's to do ur books -u'll be surprised at the answers.