Business Deductions
- Amortization
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- Car and Truck Expenses
- Day-Care Services
- Depreciating Business Property
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- Domestic Production Activities Deduction
- Health Insurance Deduction
- Home Office Deduction
- Meal and Entertainment Expenses
- Organizational Costs and Start-up Costs
- Qualified Plan Awards
- Schedule C Expenses
- Section 197 Intangibles
- Should You Sell or Trade in Your Car?
- Start-up Costs
- Travel Expenses
More Tax Topics
- Business Structures
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- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Small Business Deductions: Home Office Deduction
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How the Home Office Deduction Works
- First, you must complete Schedule C.
- Then, if Line 29 on Schedule C, shows
a Tentative profit, the
home office deduction may be used to further reduce
it, but not below zero.
- In other words, you can't use the home office deduction to create a loss.
Excess home office deduction:
Any excess home office deduction over Tentative profit is carried over to the following year and used in that year's home office deduction calculation.
Ordinary and Necessary Business Expenses
Bear in mind, ordinary and necessary business expenses are always deductible whether or not you take the home office deduction.
For example, depreciation on business machinery, office furniture and equipment, office supplies, shipping and mailing expenses.
Next:
Home Office Deduction: Qualifying for the Home Office Deduction; Principal Place of Business Test; Administrative and Management Rule; Historical Note-Home Office Administrative and Management Rule
Related Links
- What is the Home Office Deduction?
- How to Claim the Home Office Deduction
- Using Outside Services
- Employees With a Sideline Business
- Deducting Storage Space for Business Products
- Setting Up Your Home Office
- Separate Business Structure
- Steps for Computing the Home Office Deduction
- The Home Office Deduction Computation
- Direct Expenses
- Indirect Expenses
- How to Allocate Indirect Residential Costs to Your Home Office
- Form 8829, Expenses for Business Use of Your Home
- Illustration of Home Office Deduction Computation
- Day-Care Services
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