How To Calculate Depreciation For Your Home Office Deduction

How to Calculate Depreciation for Your Home Office Deduction

Depreciation is the most confusing part of the full home office deduction, but it can be quite valuable when it comes to minimizing your tax bill. In fact, it’s one of the best tax benefits of working from home. [Be aware: Depreciation only applies if you own your home.] Depreciation expense puts a dollar value on the normal wear and tear on the part of your home that you’re using for business.   The calculation itself can seem daunting – but you only have to do the hard part once, and after that it’s extremely simple. We’ll walk through that…

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Maximize Your Home Office Deduction – Do It The Long Way

Maximize Your Home Office Deduction – Do It the Long Way

If you work from home, that can score you a very big tax break…as long as you can stand a little math and some extra paperwork. Sure, there’s a very simple way to take the home office deduction – multiplying the square footage of your space by $5 – but it’s limited to $1,500. And a lot of us with home offices can get a much bigger deduction than that (especially if your workspace is bigger than 300 sq. ft.). To reap the benefits of the biggest possible deduction, you have to use the original recipe to calculate your tax…

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