Maximizing Deductions – Home Office – LNK Tax Group
If your office space is located in your house, you can deduct your bills for utilities, homeowners’ insurance, homeowner’s association fees, security, and general repairs & maintenance. Mortgage interest and property taxes are deductible expenses if you qualify for home office deductions. You can deduct the percentage of the square footage of the office divided by the total square footage of your house.
House is 4,000 sq ft, and your office is 400 sq ft. Your rent and utilities are $3,000 per month.
$300 per month is your monthly home office deduction.
Tax Savings Range:
Depending on the square footage of your house and the amount of your rent/mortgage and utility payments. This is limited to net income.
At LNK Tax Group, we take special care to make sure YOU have the most amount of money in your pocket (legally, of course). If you need tax help, make sure to contact LNK Tax Group for a free 20 minute consultation.
To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Always seek advice based on your particular circumstances from an independent advisor.