Well it’s that time of year again – time to scramble to file business taxes. I wrote in this blog post about the importance of having a physically separate office space in your home from which you can run your home business.
There are some drawbacks in using your home office space as a tax deduction. For one thing, if you’re using that physical space for other purposes than the business, it’s a slippery slope. That itself underscores the importance of establishing physical boundaries in your home for the business.
There is also a depreciation issue with using a home office space tax deduction that may come into play when you sell your home. This is explained in detail in this Times article.
So be sure to discuss any aspects of depreciation and space usage with your accountant before taking your home office deduction.