“Can You Deduct Home Office Expenses for Taxes?”

– To qualify for home office deductions, individuals must use part of their home regularly and exclusively for business purposes.
– Employees who work remotely cannot deduct home office expenses, but self-employed individuals may qualify.
– Direct expenses and a proportionate amount of indirect expenses, such as mortgage interest and utilities, can be written off based on the percentage of business use of the home. 1. Home office expenses, such as mortgage interest and property taxes, may already be deductible if you itemize deductions on your personal tax return.
2. The percentage of business use for the home office is typically determined by the square footage of the office space in relation to the total square footage of the home.
3. Taxpayers can choose to use a simplified method of deducting home office expenses, which allows them to claim a deduction of $5 per square foot for the office space, up to a maximum of $1,500 for the year.
4. When selling a home, individuals who claimed home office deductions may need to recapture the depreciation attributable to the home office for the period after May 6, 1997.
5. For questions related to writing off home office expenses, computing deductions, and tax implications when selling a home, individuals can contact taxinsights@nksfb.com or rwelling@nksfb.com. 1. Taxpayers can benefit from new deductions and credits in the 2021 tax year.
2. Taxpayers should be aware of new tax laws and regulations that could impact their finances.
3. The IRS is cracking down on tax fraud and increasing enforcement efforts.

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