Do you have a real estate home office?

The other thing to think about if you take the home office deduction is if you will take a depreciation deduction. When you sell the house you may have to pay back some of what you took for depreciation. The new safe harbor deduction that does a straight per sf calculation for the deduction includes deprecition.

Hi Marte, thanks for giving me one more thing to think about...Lol.

I was aware of the deduction for a home office, but am questioning where my home office is covered by insurance.  Thank you for bringing up this topic.

That would make sense Marti, I know my homeowners insurance doesn't cover my construction tools that I store at home. It is covered by my business insurance, I need to see if I am covered in the home office.

Thanks for the thought.

Marte,Thanks for the heads up. Had not thought of that.

Good information and link. I am going to check my policy as well.

That is so true, but also we need to be mindful that the biggest way to raise an audit flag is to get carried away with a home office. Having a desk in the corner of a family room would not carry the same weight as having actual square footage devoted to that purpose.

Looks like I better breeze through the comments on this post. Good stuff!

Marte

Thanks for the tip - I have no idea, I'm embarassed to say, and will need to check. Bet that's true for lots of folks with home offices.

Jeff

Marte I had never considered this. It's absolutely worth checking into.

Thanks for pointing this out.  So many details to keep track of.