If you run a business from your home or telecommute for your employer, you may be eligible to claim some expenses on your federal income taxes. Home office deductions can be tricky, and many people have gotten into trouble with the IRS for being too liberal with these deductions. However, the IRS has simplified the rules in recent years to make it easier for people working from home.
Follow these do’s and don’ts to maximize your deductions and minimize your risks:
Do make sure that what you’re claiming as your home qualifies as a home. According to the IRS, this includes renting or owning a house, condominium, apartment, townhouse, boat or mobile home. It doesn’t include a hotel, motel or inn.