Home Office Deduction

Dear M&M:

I have an office in my home; can I still deduct it this year?


Dear Savannah:

The short answer is yes.  We however, strongly recommend you work with your accountant or tax preparer to determine what is best for your situation. We can tell you are able to deduct your workspace but you must calculate the square footage percentage as it relates to your total home.  The IRS requires this workspace is entirely dedicated to your business and is not a shared work space.   

The IRS now provides a simplified method to determine your expenses for business use of your home. For more information, see “Business Use of Your Home” in chapter 8. You may also be able to deduct travel from your work space for business.  You can either deduct the mileage as a percentage of total miles driven or deduct 56.5 cents per business mile driven in 2013 for business use. For more information, see “Car and Truck Expenses” in chapter 8.

Again, we encourage you to work with a tax preparer. One can receive Telephone Assistance for Businesses: Toll-Free at, 1-800-829-4933. Hours of Operation: Monday – Friday, 7:00 a.m. – 7:00 p.m. your local time.  Source: http://www.irs.gov/publications/p334/ar01.html


To ask your questions: Call the Small Business Development Center(SBDC) at Cochise College (520)-515-5478 or email schmittm@cochise.edu or contact the Sierra Vista Economic Development Foundation (EDF) at 520-458-6948 or email  hollism@svedf.org.


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