04/23/2023
Do you operate your business from home?
If yes you can take the home office Tax deduction !!
What qualifies as a Home Office?
There are two main requirements for your home to qualify for the home office deduction which are:
Used exclusively for business and on a regular basis AND it's a principal place of business.
Exclusively for Business and on a Regular Basis
Exclusively for Business,
This simply means that there is not personal use of the space. You cannot consider your living room that you also watch TV and play with your children in as your home office.You could use a portion of a room as long as you can provide support to prove that portion or section is only for business and never personal. This may come into play if you have a studio apartment setup.
Regular Basis , This simply means that you have to use the space regularly. If you walk into the space once a quarter, it would not qualify.
Principal Place of Business
If you meet with clients, customers, patients, etc you of course meet this test.
Basically your home office would qualify as a principal place of business if It is used for administrative or management activities and there is no other fixed location where substantial administrative or management activities are conducted.
