Sheldon's Tax Tips #3

My Home Office

Sheldon’s Tax Tips #3

Like many people I have a home office but only under certain circumstances can you deduct home office expenses.

1. It is your principle place of business

2. You use the space only to earn business income, and you use it on a regular basis to meet clients, customers or patients.

You can deduct part of your maintenance costs such as heat, home insurance, electricity, and cleaning materials. You can also deduct part of your property taxes, mortgage interest, and capital cost allowance. To calculate the part you can deduct, use a reasonable basis such as the area of the work space divided by the total area of your home.