January 24, 2012 - San Francisco Real Estate Professionals
Ah, the American Dream ... to work from home. So many businesses and offices are automated today, there are many more options to work at home virtually – or virtually work from home!
Imagine sitting in front of your computer coffee in one hand, bunny slippers on your feet – saving on gas and travel time. NOT having to drive in all that bumper to bumper traffic! American workers are working more from home than ever before. Whether they are self-employed or work for their employers, 1 in 5 or 21.3% work from home.
According to the National Association of REALTORS®, “The United States Treasury recently announced good news for some of these workers who may qualify for the home office tax deduction: a new, simpler option for calculating the home office tax deduction that should increase the number of Americans taking advantage of the deduction and decrease taxpayer preparation time. Instead of the 43-line form required before, qualified taxpayers can deduct $5 per square foot of home office space up to 300 square feet. It’s not available right away. This option will be available starting in tax year 2013, and most taxpayers will file this return in early 2014.”
However, not ALL home offices meet the criteria for the deduction.
According to the IRS, home offices must have 2 basic requirements for the deduction:
Regular and Exclusive Use, which means the office you set up in your bedroom may not fit under the criteria needed for the deduction. (PLUS, there are many other reasons that may not be a good place for your home office anyway, but that is for a future post.)
Principal Place of Business, which means if your main office is at your employers and you just do a little bit work at home, your home office may not qualify for the deduction. According to the IRS,” Generally, deductions for a home office are based on the percentage of your home devoted to business use. So, if you use a whole room or part of a room for conducting your business, you need to figure out the percentage of your home devoted to your business activities.”
There is so much more to know about how this may work in your tax situation, you should really ask your professional tax preparer or CPA. They are the professionals who know how your home office can qualify for tax deductions.
We’re the professionals who can find your home office in the San Francisco Bay Peninsula area!! We have some great homes in the Bay area which have great rooms for your dedicated home office. So, if you’re going to work from home, you may as well do it in comfort and style!@
Call (650) 434-2289 today and let’s find that home office for you!