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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121482  
Subject: Re: Working at home Date: 12/22/1998 6:33 PM
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[[My wife wants to quit her job and provide child care in our home. I know this
will not earn the income she is currently earning but I want to learn what some of
the tax advantages to working out of the home are? Can a portion of the
mortgage or utility bills be deducted?]]

Generally speaking, the answer is yes...at least on a percentage basis.

But your wife will not only have these expenses, but many others. She is actually starting her own business. And there are a LOT of tax issues regarding having your own business.

With respect to reviewing the requirements and opportunities of filing a Sch C, read IRS Publication 334 at the IRS web site. With respect to deductions dealing with child care services specifically, those issues will be discussed in much more detail in Pub 334, since there are very special rules with respect to child care providers. In addition, you'll want to read IRS Publication 587 regarding the "office in home" deduction.

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Roy

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