Tax Deductions for Home Offices

The economic situation in the United States these days is bleak for many people. Jobs are hard to come by, even with a set of degrees, certifications and experience. The housing situation doesn’t help things either, but there’s something you can do about it to help you a little bit. Maybe you can’t find a job to fit your needs, whether you can’t get a decent salary or find a job within the right location, what you can do is create your own job for a little while. Trying to freelance and gain a bigger network, all while using your home as your office and getting deductions for it.

These days more and more people are working from home, setting up shop in a room they’ve designated as the office. Self-employed people working from home adding phone lines, setting up scanners, fax machines and of course computers. Of course, if you choose to work from home, you’ll have to remember to pay self-employment tax unlike when working for an employer that pays half of your social-security contributions.

The good thing about working from home is that you can get a tax break because you can deduct your rent because it’s part of your business expenses. If you own your home, the Raleigh movers remind you that you can take a depreciation deduction based on the portion of the home that you’re using. Besides you’re housing expense, you might also have supplies, travel, and auto as other expenses. You can also deduct a percentage of your utilities bill, homeowners insurance and other costs that affect running your household.

TheIRS requires you to prove that you’re using a specific space in your home dedicated to your business. Your home has to be your principal place of business. There are specific rules to follow regarding home office deductions so visit the IRS’ website for more information.

Should you need to move to a bigger home, so you can have a separate room for your office, count on the local Raleigh local movers to do the job for you. All My Sons of Raleigh is a reputable moving company with professional movers by their side, in each of the moving offices across the U.S. The Raleigh moving specialists will quilt pad wrap your furniture as well as your delicate office equipment, so you have nothing to worry about.