Two Ways To Write Off Your Home Office

Ahhhhhhh, ready for a good Monday and start to the week? Awesome, us too :)

Recently, I was talking to a client and they were asking about the home and they were conflating two things. And that's totally fine, we're the tax guys, not our client. And then for the next couple minutes, I made sure to explain the different ways to take the home office deduction. 

Yes, that's right, there's two ways to take the home office deduction. First, you have the simplified method where you take the square footage of your home office and multiply by $5, and it maxes out at 300 square feet. Easy math, boom, on to the next.

Now the other method is to calculate your shared expenses between your home and home office, such as water, electricity, internet, etc. Then multiply that by the % of your home that your home office takes up.

I know, I know, a few more moving parts and JT explains it better in the video here, https://www.instagram.com/p/C4ZnF95snW7/ . Oh, and we'll skip the depreciation recapture tax for now. 

For today, the most important thing is that there are two ways to write off your home office. Here's that link again, https://www.instagram.com/p/C4ZnF95snW7/

For your tax situation specifically, which is best for you? Well, like anything it depends. Would you like us to run the numbers for you and find out? 

If so, reply to this email and we'll message you to set up a time to talk. Sound good? thanks and we'll talk soon.