In certain cases, a tax deduction may be taken for business use of a home. This is not limited to just an office. It also applies to various other uses. As long as the technical requirements are met, a percentage of home-related expenses may be deducted. These expenses include utilities, rent, insurance, depreciation, mortgage interest, and real estate taxes. The IRS defines "home" for tax purposes as any home business space, including a house, apartment, condominium, or boat. The term also includes separate structures on the property, including garage, studio, bard, or greenhouse. There are two requirements a person has to meet in order to claim expenses for the business use of his or her home (Carter, 2001).
             Requirement one is that a part of the home must be used regularly and exclusively for a trade or business. The IRS defines this as using a part of your home for business on a continuing basis, not just for occasional or incidental business. A few hours a day, on most days, is probably enough to meet this test. Exclusive use means that the portion of the house must used only for business. A room that is used for business and personal uses does count as exclusive use. There are two exceptions to the exclusive use rule. If room is used to store inventory or products samples, or if the room is used to run a qualified day care facility, the room does not have to be used exclusively for business (IRS, 2004).
             In addition to the regular and exclusive rule, the room must pass one more test. The room must be either the principal place of business, a place to meet clients or customers, or a separate structure on the property. It only has to pass any one of these tests to qualify for a tax deduction. If the business only has one location, then the room automatically becomes the principal place of business. If the business has more than one location, then room qu
             ...