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Author: TMFKeeler Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121319  
Subject: Home Office clarification Date: 12/8/1999 11:36 PM
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I've read the excellent Foolish tax guide, I've read Pub. 587, and I've read the FAQs and old posts on this board but I'm still confused on some aspects of the Office in Home deduction thing.

I have a home office, it is only used to telecommute to work (W-2 employee). As I understand it, I have two options. I can say this room is an Office in Home and deduct all the equipment used within, maintenance costs, indirect expenses, etc. and depreciation of the home. Or I can say I have a home office and deduct the same expenses but not the depreciation.

From reading this board it is obvious that doing the former creates tax liabilities later when you sell the house and general hassles.

Here is where I get confused...If I'm not already off ;-)

How does the 2% Misc. Deduction limit effect my situation? If I take the Pub. 587 Office in Home do I need to subtract 2% of AGI from my deductions? If I don't declare an Office in Home but just deduct my home office expenses, are they reduced by 2% of my AGI (minus any other Misc. deductions)? I doubt I'm making myself clear, it is hard to ask a question about something you don't understand LOL

Reading Pub 587 they talk about putting stuff on Schedule A and/or C. This will be the first year I will ever itemize so I'm not familiar with these schedules. This might be why I can't follow the IRS in their Pub. Is C only for the self-employed and not for W-2 employees?

Another thing is Schedule 179, can you use that for business equipment even if you don't claim an Office in Home?

Patrick

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