Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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

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.


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
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.