Lots more questions. What kind of business are you in. Do
you meet clients there and have a seperate entrance for the
office? You say you

pay $1800 for the property, do you mean that is your
mortgage or rent? I think that you need to see a tax
professional.

Missy Doyle

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<dfetrow410[at]hotmail.com> wrote:

- quote -

It's not quite that simple and we need more facts. Is your
office use for a business (ie, are you self employed) or
just used in connection with your employment? This only
matters if you don't already itemize because in the latter
case, it's an itemized deduction.

Another point....you don't base your expense on your house
payment. You depreciate the business use of your home cost
and take the percentage usage on other upkeep items like
utilities, upkeep, etc. The part of mortgage interest NOT
used for business is still usable for itemized deductions.

All the above presumes you use the business portion
exclusively for business, which is a rather high bar to
hurdle.

Mike Lewis, CPA

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You are leaving out the proper basis which is the original
cost of the home less the value of the land times the
percentage of use divided by the 39 years used for
commercial property which all equals the depreciation
allowed or allowable.

Once a business percentage is established you are also
leaving out the percentage of interest, real estate taxes,
utilities, insurance, repairs, etc.

And it's a good idea to check with a professional about
claiming a home office in the first place. Often it is not
allowable; often it's a bad idea in the first place.

What you actually pay per month has absolutely nothing to do
with the office-in-the-home deduction.

Nan, EA in LA

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<dfetrow410[at]hotmail.com> wrote:

- quote -

Not nearly that simple. Assuming the $1800/month you refer
to above is a mortgage payment, this has nothing to do with
the amount of home office deduction you can take. The 10
percent you mention above can be applied to the amount of
mortgage interest you pay during the course of the year and
other home-related expenses such as utilities. You can also
depreciate 10% of the cost basis of your house. Be aware,
you must meet very strict criteria to take a home office
deduction. You should review IRS Publication 587, Business
Use of Your Home for more information.

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Am I right in my assumption...

Married Filing Jointly $59,401-$119,950 25% Tax Bracket

Determine what percentage of your home's total square feet is
dedicated to your business. For example, if your office takes
up 10% of your home's total area and you pay $1800 per month
for the property, you can claim $180 per month as a business
expense which would be $2160 per year.

Deduction 2160 X .25 = $540

So I will actually get back $540. Is it that simple?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >