Weather like today makes me value being able to work from home. Not having to leave the house in hazardous conditions is a plus but being able to take advantage of the home office deduction on my tax return is a bonus.
If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes.
Starting January 1st 2013 the IRS came out with a simplified option. This new simplified option can significantly reduce recordkeeping burden by allowing a qualified taxpayer to multiply a prescribed rate by the allowable square footage of the office in lieu of determining actual expenses.
If it’s more beneficial to use the regular method you must determine the actual expenses of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. However do not forget about deprecation recapture when you decide to sell your home.
Consult with a CPA for more information in regards to home office deduction and cost of depreciation recapture.