The IRS Deductions Blog

Posts Tagged ‘independent contractor tax deductions 2009’

Question: home office and computer Tax Deductions?

I am an independent contractor. I do marketing for a real estate company plus some of the agents. I agreed to spend about 8hrs per week at their office but use my computer. I use my computer 90% for work related. My guestroom is set up as an office with some other misc. things stored in it. Can I deduct my office and my computer?

Answer: From the IRS website http://www.irs.gov/taxtopics/tc509.html

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To deduct expenses for business use of the home, part of your home must be used regularly and exclusively as one of the following:

- The principal place of business for your trade or business;
- The place where you meet and deal with your patients, clients, or customers in the normal course of your trade or business; or
- In connection with your trade or business, if you use a separate structure that is not attached to your home.
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The keyword here is EXCLUSIVELY. And 90% does not mean exclusively.

As long as IRS does not audit you — e.g you have no glaring tax deductions such as construction of a pool inside your house and claiming it as part of home office deductions — then you can be safe. There have been cases when IRS audited home offices and disallowed the deduction of computers supposedly used for business but contains games

Note though that IRS is quite strict with home office deductions, so read their guidelines carefully

Items on Amazon Right Now for Contractor Tax Deductions:

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