As a freelancer, can you claim a home office? How much do you get on your taxes? What are the rules on this?

Question

Wow! this is great news. I have freelanced for more than a year now. We have a spare bedroom that is my office. (We also store stuff in there too- I hope that is ok) I wonder if I can claim all the ink and paper I absolutely have to use for my job?

OK, I know this question is dumb... but does that include the closet in the room? We have a huge closet with lots of stuff in the office. Do I have to clear that out also?

Answer 1

yes & see an account

Answer 2

Your spare bedroom can only be use for the business. That is it. Remove all nonbusiness stuff out (includes TVs, games, luggage, etc.). Just imagine an office at a bank. If you go to the IRS web site you can download forms and pubs to claim a home office.

Answer 3

You can only take a home office deduction if you use a part of your home regularly and exclusively for the business activity. In your additional info, you mention that you also store stuff in there - then it isn't used EXCLUSIVELY for business, so no you can't take the home office deduction unless what you're storing is inventory for your business, not if it's personal stuff. Sorry. That info might not have been there when some others answered earlier that you could take the deduction.

Answer 4

If you work from your home office, you can claim expenses related to it. The portion of your home that is the office (say 20%) you can claim 20% of your utilities, rent, etc as well as other expenses directly related to the business such as supplies and equipment.
You should, at a minimum, get some small business software or tax software to apply the rules or have an accountant do your taxes for you.

Answer 5

If you qualify you can deduct your home office depreciation and other expenses (prorated mortgage, utilities and supplies and repairs etc., ). But the deduction of the home office expense is one of the most audited areas according to the IRS bulletin, because my dear people abuse this option too often. So do not get excited too quick, make sure to check the Exclusive Use Test to see if you qualify!

http://www.irs.gov/publications/p587/ar02.html

On above site, scroll down all the until you see the info

Answer 6

You can claim a percentage of you house if it is "neccesary to carry out your business".

The rule is, if you have a house with 5 rooms (2 bed, 1 ketchin, 1 living, 1 bath), and you use one of the bedrooms for an office, you can claim 20% of your morgage and land tax. This means that you will get the taxable value reimbursed to you (so say that you paid $20,000 for your house this year, the taxable value of that is ABOUT $5,000, you would get aprox. $1000 back)

You also get to do the same with your electricity/heat if you would normally turn all of it off when leaving for work. You can not write off the bathroom or ketchin though (i tried). You can fully write off internet and phone if they are excusivly used for the business. I usually use the rule of thumb:

Whatever you pay out of your pocket, you will get about 1/20 of it back in income taxes. KEEP RECEIPTS

Answer 7

Here is the link: http://www.irs.gov/taxtopics/tc509.html

You can deduct a percentage use of the Internet expenses, water and electricity expenses for home office.
To qualify to claim expenses for business use of your home, your use of the business part of your home must be exclusive, regular, and for your business.

Also the business part of your home must be one of the following:
*Your principal place of business,
*A place where you meet or deal with patients, clients, or customers in the normal course of your business, or
*A separate structure (not attached to your home) you use in connection with your business.

Answer 8

the rules are so many and so varied that it is best to go to irs.gov and look it up. also, you need a good accountant because the irs loves to pick on home office deductions.