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Saving Money by Taking Advantage of Your Home Office

By Niman Singh

Services for Real Estate Pros with SimplifyEm

May 07, 2008 05:28 AM

I know a lot of you use a home office for your business, so I hope this tip is useful for you...

If you used a portion of your home exclusively and on a regular basis as your principal place of business, then the expenses for your home office are considered deductible.

Even if you store things in your garage for your business, that may be considered a deductible storage space.

You can deduct a portion of your utilities, real estate taxes, mortgage interest, rent, insurance, repairs, depreciation, and any other expense related to your home.

The percentage of deductible expense is determined by the total square footage of your home office in relation to the size of the entire building.

Certain requirements must be met (like exclusive and regular use), so be sure to consult with a tax advisor.

To learn more about all the different ways to save money on real estate investments, visit our sites.

Niman Singh

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Suzanne Gantner

Realty Texas - Round Rock, TX

GRI, E-Pro, SRES, SRS, ABR, CNE, REDS, CPS, WCS

Good advice, I wasn't aware you could use the exemption of the garage also - fabulous!!

May 07, 2008 05:33 AM

SimplifyEm - Fremont, CA

Property Management Software

Suzanne, thanks for the comment.

I have a property manager who writes of the entire garage space, because the garage is full of landscaping materials, tools, and other things that he uses to maintain the property.

That's all the garage is ever used for (storage and workspace), so he is entitled to use the garage as a home office expense.... so it's certainly a really nice deduction for him.

May 07, 2008 05:47 AM

Jennifer Butz

Not yet determined - Lilburn, GA

That's great! I do use my office as workspace for my job, I just hope they don't kick and scream to see I am a loan officer and I am not supposed to be working from home! LOL

May 07, 2008 05:57 AM

As long as something is considered "ordinary and necessary" by the IRS, you're good...

Sep 09, 2008 01:13 PM

Saving Money by Taking Advantage of Your Home Office

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