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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121594  
Subject: Re: Telecommuting Deductions Date: 7/27/1999 4:05 PM
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I have been working at home (telecommuting, but I work for
GTE) for the last year and a half and I am considering
revising my 1998 tax return to deduct the use of my home for
work. I will also do this for 1999 but I will only be working
at home from Jan - Aug. I am changing jobs at the end of Aug.

My question is: What can I safely deduct?


First, get Pub 587 which answers all these questions, but:

My home office is 90 sq ft, which represents 6.6% percent of
my home. I can confidently say that this office area is only
used for work purposes.


That's not the only requirement.

This is the list of deductions I think I can deduct, please add
or subtract from this list: (PS> These are things I pay for
myself)

6.6% of my mortgage (priciple only since the interest is
already deducted)


You CAN'T deduct the mortgage principal, only the interest, which you must deduct from the mortgage interest you already take. No advantage here.

You CAN, however, take depreciation on the 6.6% of home value (less land) and when you sell the house maybe pay tax on that recapture.

6.6% of my utility bills (Gas, Electric, Water??)

6.6% of my Home Insurance??

Anything else? Any help would be greatly appreciated.

Thanks,
P.

Yes, all direct upkeep of business area, and 6.6% of all other EXPENSES, not capital.
Also must take 6.6% of taxes, which you must deduct from the taxes you already are able to deduct. No advantage here.
Hardly worth it, is it? See Pub 587 for details. Ed
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