Q & A Chapel Hill Home Office Deductions

Is your Chapel Hill home also your office? Today many people are finding it convenient to work from their homes. It reduces the cost of commuting and with the widespread use of computers jobs that once required going to an office can now be accomplished at home. What tax breaks are available for those who use part of the space in their Chapel Hill home as their office? Take a look at the following questions and answers to give you an idea of what the IRS considers deductible for home offices.

Question: Can part of the maintenance of my Chapel Hill home be deducted if I have a home-based business?
Answer: This is not generally considered tax deductible. If maintenance is connected to your occupation, it may be considered an essential part of the business. It is best to consult your tax preparer.

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Question: My wife and I share space as a home office even though our businesses are different. Can separate deductions be taken?
Answer: Although both businesses must file a Schedule C, only one person may take the deduction for the space used as a home office.

Question: I run a day care business in my Chapel Hill home and a large part of the home is used for this business. How do I figure what is deductible?
Answer: A day care is an exception. The space must be used regularly, but not exclusively as most home offices. Licensing requirements must also be met to qualify for this business.

Question: If I have a home office but sometimes work out of town, can I still take the deduction?
Answer: If your business meets the conditions of a home office – regular, exclusive use – the deduction is still available when you are working from another temporary location.

Question: What part of the utility bills for my Chapel Hill home are deductible?
Answer: Utility bills can be deducted using a percentage method. If the space used for a home office is 10% or more of the entire square footage of the home, you may deduct 10% of the utility bill.

Question: My business is conducted from a studio in my home; however, I do not work full-time. Does the studio qualify as a home office?
Answer: An area that is used only for your primary business and is used regularly qualifies. Your work does not have to be full-time.

Question: Can the home office be located anywhere in my Chapel Hill home?
Answer: As long as the space used is your primary business and it is used regularly for the work that you do, it qualifies as a home office. You may want to separate it from other space in the home using a partition.

Have more questions? Contact Chapel Hill Realtor, Christine Khoury, to get your answers today!

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