Know If Your Home Office Is Tax Deductible

PennyGem’s Elizabeth Keatinge tells us whether you can claim a home office tax deduction.

Transcript

00:00a lot has changed in the last year likely including your work situation if you're

00:08working from home can you claim your home office as a tax deduction self-employed

00:12taxpayers and independent contractors can claim the deduction according to the

00:16IRS if you use part of your home for business you may be able to deduct

00:20expenses for the business use of your home the home office deduction is

00:24available for homeowners and renters and applies to all types of homes there must

00:28be quote regular and exclusive use unquote if you use an extra room to run a

00:34business you can take a home office deduction for that extra room you must

00:38show that you use your home as your principal place of business what if you

00:41work at both your home and another location if you conduct business at a

00:45location outside of your home but also use your home substantially and regularly to

00:50conduct business you may qualify for a home office deduction vertical advisors

00:54managing partner peter digger gory tells market watch some states let employees

00:59take deductions on home office expenses on their state income taxes such as Alabama

01:04Arkansas California Hawaii Minnesota New York and Pennsylvania check out irs.gov for

01:11more information