If you operate a self-employed business from home, you may qualify for valuable tax-saving home office deductions. But using the computer in your home office for personal reasons could cost you the home office deductions.
Strategy: Buy a separate computer or laptop for personal use.
Here’s the whole story: To qualify for home office deductions, a portion of your home must be used “regularly and exclusively” as:
- Your principal place of business.
- A place to meet or deal with customers, clients or patients in the normal course of business.
If you qualify, you can deduct expenses directly associated with your home office, like painting or repairs, in addition to a proportionate share of the home’s expenses. This includes utilities, insurance, mortgage interest and property taxes as well as a.
If you buy computer equipment for business use in a home office, the cost and related fees are deductible, but ...(register to read more)