Guide Working From Home: Legal, Tax, Insurance and Other Things That Matter

Free download. Book file PDF easily for everyone and every device. You can download and read online Working From Home: Legal, Tax, Insurance and Other Things That Matter file PDF Book only if you are registered here. And also you can download or read online all Book PDF file that related with Working From Home: Legal, Tax, Insurance and Other Things That Matter book. Happy reading Working From Home: Legal, Tax, Insurance and Other Things That Matter Bookeveryone. Download file Free Book PDF Working From Home: Legal, Tax, Insurance and Other Things That Matter at Complete PDF Library. This Book have some digital formats such us :paperbook, ebook, kindle, epub, fb2 and another formats. Here is The CompletePDF Book Library. It's free to register here to get Book file PDF Working From Home: Legal, Tax, Insurance and Other Things That Matter Pocket Guide.
Feb 23, Working from home can be a blissful work arrangement, but around tax time, the mortgage, painting the room, real estate taxes, utilities, and home insurance. When you're an employee working from home you have one other . and author of The Law of Telecommuting highlights the issues with these.
Table of contents



Since the new tax bills have been coming out of the House and Senate, many small business owners and the self-employed have been carefully watching to see what they actually contain. There have been many criticisms of the tax bills, and rightly so.

If You Work From Home, Here Are 11 Tax Deductions You Need to Know About

But one concern I've been hearing from entrepreneurs and self-employed people is that they would no longer be able to deduct ordinary business expenses like a home office or staples, for that matter. It got to the point that even major media began to echo the concerns. Here's an excerpt from the Washington Post on the Senate version:. What we have here is a failure to communicate -- or at least to clearly read what is going on. The problem is that some people in the media, and apparently some business owners, don't realize that there are two ways in which business expenses can be deducted.

Mary Lake used her basement to operate a daycare business for children. She figures the business percentage of the basement as follows. She used the basement for daycare an average of 12 hours a day, 5 days a week, for 50 weeks a year. During the other 12 hours a day, the family could use the basement.

She figures the percentage of time the basement was used for daycare as follows. Mary can deduct However, because her indirect expenses are for the entire house, she can deduct only She figures the percentage for her indirect expenses as follows. Mary completes Form , Part I, figuring the percentage of her home used for business, including the percentage of time the basement was used. In Part II, Mary figures her deductible expenses. She uses the following information to complete Part II. This figure is the same as the amount on line 29 of her Schedule C Form The expenses she paid for rent and utilities relate to her entire home.

Therefore, she enters the amount paid for rent on line 18, column b , and the amount paid for utilities on line 20, column b. She shows the total of these expenses on line 22, column b. The painting is a direct expense. This is less than her deduction limit line 15 , so she can deduct the entire amount. Assume the same facts as in Example 1 except that Mary also has another room that was available each business day for children to take naps in.

Although she did not keep a record of the number of hours the room was actually used for naps, it was used for part of each business day. Since the room was available for business use during regular operating hours each business day and was used regularly in the business, it is considered used for daycare throughout each business day. In figuring her expenses, Assume the same facts as in Example 1 except that Mary stopped using her home for a daycare facility on June 24, She used the basement for daycare an average of 12 hours a day, 5 days a week, but for only 25 weeks of the year.

During the other 12 hours a day, the family could still use the basement. She figures the percentage of time the basement was used for business as follows. If you provide food for your daycare recipients, do not include the expense as a cost of using your home for business.

Claim it as a separate deduction on your Schedule C Form You can never deduct the cost of food consumed by you or your family. For more information on meals that meet these requirements, see Meals in chapter 2 of Pub. If you deduct the actual cost of food for your daycare business, keep a separate record with receipts of your family's food costs. Reimbursements you receive from a sponsor under the Child and Adult Care Food Program of the Department of Agriculture are taxable only to the extent they exceed your expenses for food for eligible children.

If your reimbursements are more than your expenses for food, show the difference as income in Part I of Schedule C Form If your food expenses are greater than the reimbursements, show the difference as an expense in Part V of Schedule C Form Do not include payments or expenses for your own children if they are eligible for the program.

Standard meal and snack rates. If you qualify as a family daycare provider, you can use the standard meal and snack rates, instead of actual costs, to compute the deductible cost of meals and snacks provided to eligible children. A family daycare provider is a person engaged in the business of providing family daycare. Family daycare is childcare provided to eligible children in the home of the family daycare provider. The care must be non-medical, not involve a transfer of legal custody, and generally last less than 24 hours each day.

Eligible children are minor children receiving family daycare in the home of the family daycare provider.

Eligible children do not include children who are full-time or part-time residents in the home where the childcare is provided or children whose parents or guardians are residents of the same home. Eligible children do not include children who receive daycare services for personal reasons of the provider. For example, if a provider provides daycare services for a relative as a favor to that relative, that child is not an eligible child.

You can compute the deductible cost of each meal and snack you actually purchased and served to an eligible child during the time period you provided family daycare using the standard meal and snack rates shown in Table 3. You can use the standard meal and snack rates for a maximum of one breakfast, one lunch, one dinner, and three snacks per eligible child per day. If you receive reimbursement for a particular meal or snack, you can deduct only the portion of the applicable standard meal or snack rate that is more than the amount of the reimbursement.


  1. Hiring Workers in Your Home: Legal Requirements | efycymepodor.tk.
  2. Information Menu.
  3. .
  4. Source of the Gold (The Tree of Life Book 3).
  5. If You Work From Home, Take Advantage of These 11 Tax Deductions.
  6. Zoom-Zoom-Vroom! - #1 The Dream Part 1?
  7. Bull Dancer;

You can use either the standard meal and snack rates or actual costs to calculate the deductible cost of food provided to eligible children in the family daycare for any particular tax year. If you choose to use the standard meal and snack rates for a particular tax year, you must use the rates for all your deductible food costs for eligible children during that tax year.

However, if you use the standard meal and snack rates in any tax year, you can use actual costs to compute the deductible cost of food in any other tax year. If you use the standard meal and snack rates, you must maintain records to substantiate the computation of the total amount deducted for the cost of food provided to eligible children. The records kept should include the name of each child, dates and hours of attendance in the daycare, and the type and quantity of meals and snacks served.

This information can be recorded in a log similar to the one shown in Exhibit A , near the end of this publication.


  • Top tax write-offs that could get you in trouble with the IRS.
  • Hiring Workers in Your Home: Legal Requirements.
  • Top tax write-offs that could get you in trouble with the IRS;
  • The standard meal and snack rates include beverages, but do not include non-food supplies used for food preparation, service, or storage, such as containers, paper products, or utensils. These expenses can be claimed as a separate deduction on your Schedule C Form In most cases, you must meet the ownership and use tests. However, even if you meet the ownership and use tests, your home sale isn't eligible for the exclusion if either of the following is true.

    The ownership and use tests generally require that during the 5-year period ending on the date of the sale: You lived in the home as your main home for at least 2 years use test. The 2 years of residence can fall anywhere within the 5-year period, and it doesn't need to be a single block of time.

    If you use property partly as a home and partly for business, the treatment of any gain on the sale varies depending on whether the part of the property used for business is part of your home or separate from it. If the part of your property used for business is within your home, such as a room used as a home office for a business or rooms used to provide daycare, you do not need to allocate gain on the sale of the property between the business part of the property and the part used as a home.

    In addition, you do not need to report the sale of the business part on Form , Sales of Business Property. This is true whether or not you were entitled to claim any depreciation. However, you cannot exclude the part of any gain equal to any depreciation allowed or allowable after May 6, See Depreciation , later. You may have used part of your property as a home and a separate part of it, such as an outbuilding, for business. You cannot exclude gain on the separate part of your property used for business unless you owned and lived in that part of your property for at least 2 years during the 5-year period ending on the date of the sale.

    If you do not meet the use test for the business part of the property, an allocation of the gain on the sale is required. For this purpose, you must allocate the basis of the property and the amount realized upon its sale between the business part and the part used as a home.

    You must report the sale of the business part on Form If you used a separate part of your property for business in the year of sale, you should treat the sale of the property as the sale of two properties, even if you met the use test for the business part. To determine the amount to report on Form , you must divide your selling price, selling expenses, and basis between the part of the property used for business and the separate part used as your home. In the same way, if you qualify to exclude any of the gain on the business part of your property, also divide your maximum exclusion between that part of the property and the separate part used as your home.

    You generally can exclude gain on the part of your property used for business if you owned and lived in that part as your main home for at least 2 years during the 5-year period ending on the date of the sale. Use test met for business part no business use in year of sale. If you have used a separate part of your property for business though not in the year of sale but meet the use test for both the business part and the part you use as a home, you do not need to treat the transaction as the sale of two properties.

    Also, you do not need to file Form You generally can exclude gain on the entire property. If you were entitled to deduct depreciation on the part of your home used for business, you cannot exclude the part of the gain equal to any depreciation you deducted or could have deducted for periods after May 6, This means that when figuring the amount of gain you can exclude, you must reduce the total gain by any depreciation allowed or allowable on the part of your home used for business after May 6, If you can show by adequate records or other evidence that the depreciation you actually deducted the allowed depreciation was less than the amount you were entitled to deduct the allowable depreciation , the amount you cannot exclude and must subtract from your total gain when figuring your exclusion is the amount you actually deducted.

    You do not have to reduce the gain by any depreciation you deducted or could have deducted for a separate structure for which you cannot exclude the allocable portion of the gain. If you used any part of your home for business, you must adjust the basis of your home for any depreciation that was allowable for its business use, even if you did not claim it. If you deducted less depreciation than you could have under the method you properly selected, you must decrease the basis by the amount you could have deducted under that method. If you deducted more depreciation than you should have under the method you properly selected, you must decrease the basis by the amount you should have deducted, plus the part of the excess deducted that actually decreased your tax liability for any year.

    For more information on reducing the basis of your property for depreciation, see Pub. A loss from the sale of your home, or the personal part of your home if it was also used for business or to produce rental income, is not deductible. If any of these conditions apply, report the gain or loss as explained in the Instructions for Schedule D.

    If you used the home for business, you may have to use Form to report the sale of the business part. See the Instructions for Form This section covers only the basic rules for the sale or exchange of your home. For more information, see Pub. This section discusses the depreciation and section deductions you may be entitled to take for furniture and equipment you use in your home for business or work as an employee. These deductions are available whether or not you qualify to deduct expenses for the business use of your home. If you use certain types of property, called listed property, in your home, special rules apply.

    Listed property includes computers and related equipment and any property of a type generally used for entertainment, recreation, and amusement including photographic, phonographic, and video recording equipment. Computers and related equipment used exclusively in a qualifying office in your home are not listed property. If you qualify to deduct expenses for the business use of your home see Qualifying for a Deduction , earlier and you use your computer exclusively in your qualifying office in the home, do not use the listed property rules discussed in this section; instead, follow the rules discussed under Property Bought for Business Use , later.

    For more information on ADS, see Pub. You must allocate the use of any item of listed property used for more than one purpose during the year among its various uses. However, you do use the combined total of business and investment use to figure your depreciation deduction for the property. Sarah's home computer is listed property because it is not used in a qualified office in her home. She can elect a section deduction. If you use your own listed property or listed property you rent in your work as an employee, the property is business-use property only if you meet the following requirements.

    The use of property as a condition of your employment means that it is necessary for you to properly perform your work. Whether the use of the property is required for this purpose depends on all the facts and circumstances. Your employer does not have to tell you specifically to use the property. Nor is a statement by your employer to that effect sufficient. Figure any excess depreciation include any section deduction on the property in figuring excess depreciation and add it to: If you use listed property in your business, you must file Form to claim a depreciation or section deduction.

    Begin with Part V, Section A, of that form. For more information on what records to keep, see Pub. If you bought certain property during to use in your business, you can do any one of the following subject to the limits discussed later. You can claim the section deduction for the cost of depreciable tangible personal property bought for use in your trade or business.

    You can choose how much subject to the limit of the cost you want to deduct under section and how much you want to depreciate.

    Help Menu Mobile

    You can spread the section deduction over several items of property in any way you choose as long as the total does not exceed the maximum allowable. You cannot take a section deduction for the basis of the business part of your home. For more information on the section deduction, qualifying property, the dollar limit, and the business income limit, see Pub. Do not include any costs deducted in Part I section deduction. Most business property normally used in a home office is either 5-year or 7-year property under MACRS.

    Under MACRS, you generally use the half-year convention, which allows you to deduct a half-year of depreciation in the first year you use the property in your business. After you have determined the cost of the depreciable property minus any section deduction and special depreciation allowance taken on the property and whether it is 5-year or 7-year property, use the table, shown next, to figure your depreciation if the half-year convention applies. In June , Donald Kent bought a desk and three chairs for use in his office.

    Donald can elect to do one of the following. Donald does not take a section deduction. If you use property in your home office that was used previously for personal purposes, you cannot take a section deduction for the property. You also cannot take a special depreciation allowance for the property. You can depreciate it, however. The method of depreciation you use depends on when you first used the property for personal purposes. If you began using the property for personal purposes after and change it to business use in , depreciate the property under MACRS.

    The basis for depreciation of property changed from personal to business use is the lesser of the following. If you began using the property for personal purposes after and before and change it to business use in , you generally depreciate the property under the accelerated cost recovery system ACRS.

    Publication 587 (2017), Business Use of Your Home

    If you began using the property for personal purposes before and change it to business use in , depreciate the property by the straight line or declining balance method based on salvage value and useful life. You do not have to use a particular method of recordkeeping, but you must keep records that provide the information needed to figure your deductions for the business use of your home.

    You should keep canceled checks, receipts, and other evidence of expenses you paid. That you use part of your home exclusively and regularly for business as either your principal place of business or as the place where you meet or deal with clients or customers in the normal course of your business. You must keep your records for as long as they are important for any tax law. This is usually the later of the following dates.

    Keep records to prove your home's depreciable basis. This includes records of when and how you acquired your home, your original purchase price, any improvements to your home, and any depreciation you are allowed because you maintained an office in your home. Deduct expenses for the business use of your home on Form Where you deduct these expenses on the form depends on whether you are:.

    If you are a partner, see Partners , later, for information on where to deduct expenses for the business use of your home. If you use your home in your trade or business and file Schedule C Form , report the entire deduction for business use of your home on line 30 of Schedule C Form Whether you need to complete and attach Form to your return depends on how you figure your deduction.

    See Line 30 in the Instructions for Schedule C for more information. If you use your home in your farming business and file Schedule F Form , report your entire deduction for business use of the home on line 32 of Schedule F Form Enter "Business Use of Home" on the dotted line beside the entry.

    Publication (), Business Use of Your Home | Internal Revenue Service

    Certain expenses related to the use of your home may be deducted whether or not you use your home for business. These expenses include mortgage interest, qualified mortgage insurance premiums, real estate taxes, and casualty losses.

    Where you deduct these expenses depends on how you figure your deduction for business use of the home. In general, you will deduct the business portion of these expenses on Schedule C Form or Schedule F Form as part of your deduction for business use of your home. If you itemize your deductions, you will deduct the personal portion of these expenses on Schedule A Form If you file Schedule C Form , enter all your deductible mortgage interest on line 10 of Form without distinguishing between personal and business use.

    Deductible mortgage interest is the total interest you can deduct after applying certain limits on qualified home mortgage interest. In other words, it is the same amount of home mortgage interest you would have been allowed to deduct using Schedule A Form if you treated the business use of your home as personal use and you itemized your deductions. The business part of the deductible mortgage interest will be included on line 14 of Form , and is generally equal to the deductible mortgage interest multiplied by the business percentage line 7 of Form If you itemize your deductions, only include the personal part of your deductible mortgage interest on Schedule A Form , lines 10 or To figure the personal part of the deductible mortgage interest to include on Schedule A, reduce all of your deductible mortgage interest by the business part you included on line 14 of Form If your deductible mortgage interest is less than your total mortgage interest because of the limits on qualified home mortgage interest, you can also deduct the business part of the excess.

    Multiply the mortgage interest you can't deduct due to these limits by the business percentage and enter the result on line 16 of Form If you file Schedule F Form , include the business part of your deductible and excess home mortgage interest with your total business-use-of-the-home expenses on line 32 of Schedule F Form You can use the Worksheet To Figure the Deduction for Business Use of Your Home , later in this publication, to figure the business part of your mortgage interest.

    Enter the nonbusiness part of the deductible mortgage interest on Schedule A Form , line 10 or To determine if the limits on qualified home mortgage interest apply to you, see the Instructions for Schedule A Form or Pub. If you file Schedule C Form , enter all your deductible mortgage insurance premiums on line 10 of Form without distinguishing between personal and business use.

    Deductible mortgage insurance premiums are the total premiums you can deduct after applying a limit based on your adjusted gross income. When you figure your adjusted gross income for this purpose, exclude the gross income from the business and the deductions attributable to that income. In other words, it is the same amount of qualified mortgage insurance premiums you would have been allowed to deduct using Schedule A Form if you did not conduct a business from your home and you itemized your deductions.

    The business part of the deductible mortgage insurance premiums will be included on line 14 of Form , and is generally equal to the deductible mortgage insurance premiums multiplied by the business percentage line 7 of Form If you itemize your deductions, only include the personal part of your deductible mortgage insurance premiums on Schedule A Form , line To figure the personal part of the deductible mortgage insurance premiums to include on Schedule A, reduce all of your deductible mortgage insurance premiums by the business part you included on line 14 of Form If your deductible mortgage insurance premiums are less than your total mortgage insurance premiums because of the limit based on your adjusted gross income, you can also deduct the business part of the excess.

    Multiply the mortgage insurance premiums you can't deduct due to this limit by the business percentage and enter the result on line 16 of Form If you file Schedule F Form , include the business part of your deductible and excess qualified mortgage insurance premiums with your total business-use-of-the-home expenses on line 32 of Schedule F Form You can use the Worksheet To Figure the Deduction for Business Use of Your Home , later in this publication, to figure the business part of your qualified mortgage insurance premiums. Enter the nonbusiness part of the qualified mortgage insurance premiums on Schedule A Form , line To determine if the limits on qualified mortgage insurance premiums apply to you, see the Instructions for Schedule A Form or Pub.

    If you file Schedule C Form , enter all your deductible real estate taxes on Form , line 11 without distinguishing between personal and business use. The business part of the deductible real estate taxes will be included on line 14 of Form , and is generally equal to the deductible real estate taxes multiplied by the business percentage line 7 of Form If you itemize your deductions, only include the personal part of your deductible real estate taxes on Schedule A Form , line 6. To figure the personal part of the deductible real estate taxes to include on Schedule A, reduce all of your deductible real estate taxes by the business part you included on line 14 of Form If you file Schedule F Form , include the business part of real estate taxes with your total business-use-of-the-home expenses on line 32 of Schedule F Form Enter the nonbusiness part of your real estate taxes on Schedule A Form , line 6.

    If you itemize your deductions, be sure to include only the personal part of your deductible mortgage interest, qualified mortgage insurance premiums, and real estate taxes on Schedule A Form Do not deduct any of the business part on Schedule A Form If you are using Form , refer to the specific instructions for line 9 and enter the amount from line 34 of Form on line 27 of Form , Section B.

    Enter "See Form " above line Attach a statement to your tax return showing how you calculated the deductible loss you can use the worksheet as your attachment. Enter "See attached statement" above line If you use the simplified method to figure your deduction for the business use of a home, your mortgage interest, qualified mortgage insurance premiums, real estate taxes, or casualty losses, subject to any limitations, are treated as personal expenses.

    No part of any of these expenses can be deducted as a business expense on Schedule C Form or Schedule F Form You can only deduct these expenses if you itemize your deductions on Schedule A Form Other expenses related to the use of your home may be deducted only to the extent they are related to the business use of your home. These expenses include insurance, maintenance, utilities, and depreciation of your home. You cannot deduct the personal portion of any of these expenses. Where you deduct the business portion of these expenses depends on how you figure your deduction for business use of the home.

    If you file Schedule C Form , report the other home expenses that would not be allowable if you did not use your home for business for example, insurance, maintenance, utilities, and depreciation on the appropriate lines of your Form If you rent rather than own your home, report the rent you paid on line 18 of Form If these expenses exceed the deduction limit, carry the excess over to next year. The carryover will be subject to next year's deduction limit. If you file Schedule F Form , include your otherwise nondeductible expenses insurance, maintenance, utilities, depreciation, etc.

    If these expenses exceed the deduction limit, carry the excess over to the next year. You cannot deduct any of these expenses. The simplified method is an alternative to calculating and substantiating these expenses. Figure your deduction using the Simplified Method Worksheet. No matter how you figure the deduction for business use of your home, deduct in full your business expenses that are not for the use of your home itself dues, salaries, supplies, certain telephone expenses, depreciation of equipment, etc.

    These expenses are not for the use of your home, so they are not subject to the deduction limit for business use of the home expenses. As an employee, you must itemize deductions on Schedule A Form to claim a deduction for the business use of your home and any other employee business expenses. This generally applies to all employees, including outside salespersons. If you are a statutory employee, use Schedule C Form to claim the expenses. Follow the instructions given earlier under Self-Employed Persons.

    The statutory employee box within box 13 on your Form W-2, Wage and Tax Statement, will be checked if you are a statutory employee. If you have employee expenses for which you were not reimbursed, report them on Schedule A Form , line You also generally must complete Form if either of the following applies. Your employer paid you for any of your job expenses reportable on line 21 of Schedule A Form Amounts your employer included in box 1 of your Form W-2 are not considered paid by your employer.

    However, you can use the simpler Form EZ, instead of Form , if you meet the following requirements. You were not reimbursed for your expenses by your employer, or if you were reimbursed, the reimbursement was included in box 1 of your Form W If you claim car expenses, you use the standard mileage rate. When your employer pays for your expenses using a reimbursement or allowance arrangement, the payments generally should not be on your Form W-2 if all the following rules for an accountable plan are met.

    You return any payments not spent for business expenses excess reimbursements within a reasonable period of time. If you meet the accountable plan rules and your business expenses equal your reimbursement, do not report the reimbursement as income and do not deduct the expenses. You adequately account to your employer when you give your employer documentary evidence of your travel, mileage, and other employee business expenses, such as receipts, along with an account book, diary, or similar record in which you entered each expense at or near the time you had it. You also may be treated as adequately accounting to your employer if your employer gives you a per diem or car allowance similar in form to, and not more than, the federal rate and you verify the time, place, and business purpose of each expense.

    Although you generally deduct expenses for the business use of your home on Schedule A Form , line 21, do not include any deductible home mortgage interest on that line. Instead, deduct both the business and nonbusiness parts of this interest on line 10 or 11 of Schedule A Form If the home mortgage interest you can deduct on lines 10 or 11 is limited by the home mortgage interest rules, you cannot deduct the excess as an employee business expense on Schedule A Form , line 21, even though you use part of your home for business. To determine if the limits on home mortgage interest apply to you, see Pub.

    Although you generally deduct expenses for the business use of your home on Schedule A Form , line 21, do not include any deductible qualified mortgage insurance premiums on that line. Instead, deduct both the business and nonbusiness parts of these premiums on Schedule A Form , line If the qualified mortgage insurance premiums you can deduct on line 13 is limited, you cannot deduct the excess as an employee business expense on Schedule A Form , line 21, even though you use part of your home for business.

    To determine if you can deduct mortgage insurance premiums and if any limits apply to you, see Pub. Deduct both the business and nonbusiness parts of your real estate taxes on line 6 of Schedule A Form For more information on amounts allowable as a deduction for real estate taxes, see Pub. If you file Form or Form EZ, report on line 4 the following expenses. The business part of your otherwise nondeductible expenses utilities, maintenance, insurance, depreciation of your home, etc. The employee business expenses not related to the use of your home, such as advertising.

    Add these to your other employee business expenses and complete the rest of the form. You are an employee who works at home for the convenience of your employer. You meet all the requirements to deduct expenses for the business use of your home. Your employer does not reimburse you for any of your business expenses and you are not otherwise required to file Form or Form EZ. You use actual expenses to figure the deduction for business use of your home.

    As an employee, you do not have gross receipts, cost of goods sold, etc. You have the following expenses. You deduct your expenses for business use of your home on Schedule A Form as shown in the following table. The facts are the same as Example 1 except that you elect to use the simplified method to figure the deduction for the business use of your home. You used square feet of your home for work during the entire year.

    You did not share the space with any other qualified business use of your home. Using the simplified method, you may claim a deduction for a maximum of square feet. You will treat the business portion of your mortgage interest and real estate taxes as personal expenses when figuring the amount to include on lines 6 and 10 or 11 of your Schedule A. The depreciation of the part of your home used for business is deemed to be zero and you will not have a carryover of any expenses. You may be allowed to deduct unreimbursed ordinary and necessary expenses you paid on behalf of the partnership including qualified expenses for the business use of your home if you were required to pay these expenses under the partnership agreement.

    If you are using actual expenses to figure your deduction for the business use of your home, use the Worksheet To Figure the Deduction for Business Use of Your Home , later. If you are using the simplified method to figure your deduction for the business use of your home, use the Simplified Method Worksheet , later. See the following forms and related instructions for information about deducting unreimbursed partnership expenses. For more information about partners and partnerships, see Pub.

    This worksheet is to be used by taxpayers filing Schedule F Form or who are employees or partners, and who are using actual expenses to figure the deduction. If you are using the simplified method to figure your deduction, use the Simplified Method Worksheet , later. Use this worksheet if you file Schedule F Form or you are an employee or a partner, and you are using actual expenses to figure your deduction for business use of the home. Use a separate worksheet for each qualified business use of your home.

    The Worksheet To Figure the Deduction for Business Use of Your Home is to be used by taxpayers filing Schedule F Form or who are employees or partners, and who are using actual expenses to figure the deduction. The following instructions explain how to complete each part of the worksheet.

    Understand your responsibilities when hiring a nanny, housekeeper,gardener, or handyperson.

    See Partners under Where To Deduct , earlier, before completing the worksheet. If you file Schedule C Form and use actual expenses to figure your deduction, use Form to figure the deductions and attach the form to your return. If you figure the percentage based on area, use lines 1 through 3 to figure the business-use percentage. Enter the percentage on line 3. You can use any other reasonable method that accurately reflects your business-use percentage.

    If you operate a daycare facility and you meet the exception to the exclusive use test for part or all of the area you use for business, you must figure the business-use percentage for that area as explained under Daycare Facility , earlier. If you use another method to figure your business percentage, skip lines 1 and 2 and enter the percentage on line 3. If you file Schedule F Form , enter your total gross income that is related to the business use of your home.

    This generally would be the amount on line 9 of Schedule F Form If you are an employee, enter your total wages that are related to the business use of your home. Enter only the amounts that would be deductible whether or not you used your home for business that is, amounts allowable as itemized deductions on Schedule A Form Under column a , Direct Expenses , enter expenses that benefit only the business part of your home. Under column b , Indirect Expenses , enter expenses that benefit the entire home. However, if the business percentage of an indirect expense is different from the percentage on line 3, enter only the business part of the expense on the appropriate line in column a , and leave that line in column b blank.

    Treat casualty losses as personal expenses for this step. As long as you use them strictly for business, any software you purchase or pay for monthly qualifies. If you ever need to travel to visit a client or attend a conference, you can deduct your mileage or airfare. The same goes for any lodging, parking fees and other travel-related expenses you incur on your own dime. Coffee meeting with a new client to discuss strategy? Five-course dinner with friends where you spend 15 minutes talking business?

    If you attend a trade show, send out flyers or buy a box of business cards, this counts as marketing, and you can deduct it. Same goes for any fees in connection with a personal website that advertises your services — hosting fees, WordPress theme purchases, etc. So keep track of those invoices from the IT pro who debugged your website, the attorney who reviewed a tricky contract and the CPA who put together your tax returns.