Business use of home expenses calculation

Business use of your home calculator - From irs publication 587 (2007), here is the detail for this limitation:your deduction of otherwise nondeductible expenses, such as insurance, utilities and depreciation (with depreciation taken last) is limited to the gross income from the business use of your home minus the sum of the following:The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes and casualty and theft losses); the business expenses that relate to the business activity in the home (for example, salaries or supplies), but not to the use of the home itself. Telephone expenses for your home officeif you want to deduct your telephone expenses for your home office, here is what you need to know: if you have one telephone line in your homeif you have only one telephone line in your home, you cannot deduct the use of the phone line for local calls, since that is not "exclusive" use of the line, under irs regulations.  ?first qualification: use of the spacethe first thing you must do is to determine if the space for your home business meets irs requirements: (1) the business must be legitimate; (2) the space must be used as your principal place of business or for specific business purposes, like meeting clients or doing business paperwork, and (3) the space must be used "regularly and exclusively" for business. You include home depreciation as part of the home office deduction and eventually sell your home at a profit, you will have to pay a capital gains tax on the total amount of depreciation deductions you took while you were living there, assuming you sold the home for a profit.

How do I calculate home deductions? - Tax Tip Weekly

If you are self-employed, you may consider doing business from the comfort of your home. Not only is it convenient, but you can ...