One wonderful benefit to working at home is the possibility of tax deductions. If you have a job that you work from home or if you run a home based business, expenses related to your work at home office can be deducted if you have a positive net income. In order to have a deductible work at home office space you must use that area solely for your home based employment. In other words you can't use the area for any personal reasons. Your work at home office has to be separate from your personal home space.
 
If you have a work at home office space solely used for your work at home business or work at home job, and you have a positive net income then you should be able to deduct a percentage of the following expenses: mortgage payments or rent, water bills, electric and/or gas bills and trash pick-up costs. If you make an improvement to the entire property such as new flooring or painting throughout the entire house then you should be able to take a percentage of the improvement costs. If you fix or remodel only the work at home office or work at home area then the whole amount should be able to be deducted. If you make an improvement to any other room, but not to the work at home office space then no deduction is allowed.
 
Figuring the deductible percentage is fairly easy. First, measure the square footage of the work at home office. Second, measure the square footage of the entire living area. Third, divide the total square footage of the entire living area by the square footage of the work at home office and the total should equal the percentage you can deduct on the mortgage payments or rent, water bills, electric and/or gas bills, trash pick-up costs and entire area improvements.
 
You can use this article as a starting point. For full benefits and laws on taxable deductions please check with your local and federal governments for regulations, and be sure to consult your tax professional.

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