As of 5/5/2014 I no longer needed or could have this deduction since the company I contracted to decided to make me an offer. I cant see where I need to adjust my taxes so this is reflected. I understand I need to pro-rate the numbers for deductions as well as depreciation.======>>>>>>>>>Correct;aslongas you use part of your home for business, you may be able to deduct expenses for the business use of your home;however, when you dispose of the home later, you must recapture the unrecaptured depre as ordinary income taxed at 25% aslogas your tax rate is 25% or higher .you stillcan deduct mortgage interest/real pty tax on Sch A of 1040 if you itemize them on your return. any amount you can deduct on your Sch A as an indirect expense. if you use the regular method required for tax years 2012 and prior, you must determine the actual expenses of your home office. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. 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.
Is there a special form or worksheet, or do I just adjust the numbers in box 10 or 11 of form 8829 as well as line 41.=====>>>>>>>>>I think so; direct expenses you incur because you operate your business at your home go on your Sch C.Direct expenses only apply to the business part of your house. For example, you have to paint the walls (maybe you are painting it with special reflective or fire resistant paint) or repair a broken window in that part of the house only.Indirect expenses are costs you have for keeping up your entire home. For example, maid service or you have the exterior of your home painted, your air conditioner repaired or you have a home security system. One caveat: you can't deduct landscaping or lawn care as a direct or indirect expense.as mentioned above. Also as you know, no depreciation is allowed unless the home is used for your biz purposes.
It would seem changing these numbers would perk the IRS interest without some sort of explanation. I am trying to do the right thing here but they are not making it easy====>>>>>>>>>>>I guess possibly aslongas you are subject to IRS audit. Although an estimated 26 million TPs have home offices, just 3.4 million TPs claim home-office deductions.TPs with home offices forgo the tax breaks because they fear the write-offs will trigger a tax audit. home offices no longer set off alarms at the irs |