Tax allowance for business use of home

Business use of home allowance - 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. Can claim the home business tax deductionyou can only claim business-use-of-home expenses if your home is your principal place of business, or you use the work space in your home only to earn your business income and use it regularly to meet with clients, customers or patients. To figure out your business-use-of-home expenses, you would calculate how many hours in the day you use the work space in your home for business purposes, divide that amount by 24 hours, and then multiply the result by the business portion of your total home expenses. Although no part of the cost of the firs telephone line on your home can be deducted, the full cost of a special line for your business and other direct expenses—such as the cost of long distance business calls—can be written off.