"To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. Incidental or occasional business use is not regular use. You must consider all facts and circumstances in determining whether your use is on a regular basis."Understanding the home office tax deduction Claiming the home office tax deduction is a great tax strategy that allows you to deduct the costs associated with your home office, thus lowering your taxable income and your overall tax bill. Remember that tax deductions lower your taxable income and they are equal to the percentage of your marginal tax bracket. For example, if you are in the 25% tax bracket, a $1,000 deduction saves you $250 in tax (0.25 x $1,000 = $250). There are two main types of tax deductions: the standard deduction and itemized deductions. A taxpayer may use one or the other, but not both. It is typically recommended that you itemize your deductions if their total is greater than the standard deduction.
How to Pass the 'Part-Time' Tax Test for a Home Office Deduction
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