How to write off your mortgage

how to write off your mortgage


Best Answer: Very few employees qualify for the home business deduction anymore. IRS rules state that to be deductible, your home must be the ONLY place you do business. That leaves out most employees. In addition, if you are an employee and not self-employed, the home office must be for the "convenience of the employer". i.e. you can't just say, I do some work at home and qualify. Your EMPLOYER must say, you have to do this work at home.

From IRS regs:

". Principal Place of Your Business. You must show that you use your home as your principal place of business. If you conduct business at a location outside of your home, but also use your home substantially and regularly to conduct business, you may qualify for a home office deduction.

For example, if you have in-person meetings with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business.

Additional tests for employee use: If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. You must meet the tests discussed above plus:

"Your business use must be for the convenience of your employer. If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home."

All these rules take away the deduction for nearly everyone unless self-employed.


Category: Credit

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