Are You Maximizing Your Home Office Deductions?

Freelance Finance Fix

Although the April tax deadline has passed, now is a great time to review your return to ensure you’re maximizing your home office deductions.

In this episode, Alex dives into home office deductions, different ways to compute your home office use, and what to know about Form 8829 Expenses for Business Use of Your Home.

In this episode, you’ll also hear:

• What constitutes a business use area in the home

• Gross square footage and usable square footage calculations

• Getting the most out of your home office deduction

Must-listen moments:

[00:01:46] Based on a certain calculation, you are able to allocate a share of some of your home expenses, like utilities, repairs, mortgage interest, homeowner's insurance, your property taxes, and several other expenses related to your home, against your business's income.

[00:04:21] There are several other ways you can perform a business use calculation…potentially the most simple of them all is where you simply total up the number of bedrooms or rooms in your house and divide it by the number of rooms used exclusively for your business.

[00:10:18] If you have never dived further into this calculation, it can be a worthwhile use of your time, particularly if you plan to stay in your residence for a multi-year period…getting the highest deduction year after year can put extra money in your pocket.

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