Tax Organizer For Home Office

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September 11, 2015
Tax Organizer For Home Office

Home Office

Do you qualify?

To deduct home office expenses, a taxpayer must use the space exclusively and regularly:

  1. As a principal place of business
  2. As a place to meet or deal with clients and customers in the normal course of business
  3. “In connection with” the business if the space is a separate structure, or
  4. As a place to conduct administrative or management activities of the taxpayer’s business IF there is no other fixed location of the business where the taxpayer conducts substantial administrative activities of the business.

If you qualify and want the home office deduction, this is what we will need:

For those claiming a home office for the first time, or those with a new home office space:

  1. Total square feet of space used as your office and total square feet of your home.
  2. Cost basis of your home plus any amounts you have spent on capital additions. The cost basis of the home does not include the cost you paid for the land. If you do not know the breakdown of the cost of the home and land, send us a copy of your real estate tax bill showing value of land versus building.
  3. Date you began to use the space for your home office.
  4. Total utility costs for the year (electricity; gas or oil heating costs; excluding water or personal telephone) and home insurance costs as well as real estate taxes and mortgage interest.
  5. Cost and date of improvements made during the year to the home office space.
  6. Cost of supplies, etc. purchased exclusively for the office.

For those who are claiming a home office for the same space as last year:

  1. Total utility costs for the year (electricity; gas or oil heating costs; excluding water or personal telephone) and home insurance costs as well as real estate taxes and mortgage interest.
  2. Cost and date of improvements made during the year to the home office space.
  3. Cost of supplies, etc. purchased exclusively for the office.

Simplified Method

Beginning in tax year 2013, tax payers may use a simplified option instead when figuring the deduction for business use of their home. This is a standard deduction of $5 per square foot of home used for business (maximum 300 square feet).


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