Do you qualify for a home office? Many times my clients tell me that “they” say that a home office is a red flag. NOT TRUE!

If you have a business in your home, you should have an area that is regularly and exclusively used for your business. This area would include your office area as well as any area used to store inventory, product samples, or if you are a home daycare facility.

The area must meet both words in definition. Exclusive means a specific area used only for business and regularly means the area is used regularly for business. Incidental or occasional business is not regular.

For example: if you have an office that you use for business and you allow your children to do their homework in your office and use your computer to play games, the office is not exclusive to your business even though you regularly use it. You should have a separate area that your children do their homework and they should have their own computer.

 
This information is provided in an effort to help you gather and organize the information necessary to file your individual or small business income tax return. While these financial tools are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision making process.