Home Office Expenses

Question 1

To be deductible, must either:

Answer 1

• The home is the principal place of business.
• They use the space only to earn business income, and the taxpayer uses it on a regular and ongoing basis to meet clients, customers, or patients.

Question 2

What can salaried employees deduct?

Answer 2

• Rent
• Supplies
• Repairs and maintenance
• Long distance phone calls for business

Question 3

What can commissioned employees deduct that salaried employees can’t?

Answer 3

• Property taxes
• Home insurance
• Rented equipment

Question 4

Can’t use home office deduction to…

Answer 4

Create/ increase loss from employment

Question 5

Undeducted expenses carried forward for how long?

Answer 5

Indefinitely

Question 6

Allocate expenses between workspace and personal space on reasonable basis such as

Answer 6

Floor space or number of rooms