In Home Office/Design Studio: Possible Tax Deduction

IF YOU HAVE A BASEMENT, ROOM, SPACE THAT YOU USE AND DESIGNATE AS YOUR OFFICE FOR USE DURING FREELANCE OR BUSINESS THEN YOU CAN USE THIS FORMULA.

I would make sure you have a CPA or someone familiar with the current
IRS rules/regulations before using this formula. I will gladly forward you the name of my CPA, Gale Williams, if you need one in the future.


IN HOME OFFICE SPACE EXAMPLE:
a) YOUR STREET, USA FOR 6 MONTHS JAN-JUNE
MUST HAVE ALL YOUR RECEIPTS AND THEN TOTAL AMOUNT:

MORTGAGE: $7,676.23
ELECTRIC: $ 485.45
GAS $1.075.31
CABLE TV $ 282.89
PHONE/INTERNET $ 398.15
WATER $ 66.28
CELL PHONE $ 340.83

TOTAL $10,325.09

FORMULA FOR USAGE OF IN-HOME OFFICE SPACE:
TOTAL SIZE OF HOUSE: 2000 SQ. FT.
TOAL SIZE OF OFFICE SPACE: 156 SQ. FT. (OFFICE IS: 12’ X 13’)
.13% OFFICE PERCENTAGE OF ITEMIZED COSTS ABOVE

FORMULA:
DIVIDE 156 SQ FT (OFFICE SPACE) INTO 2000 SQ FT (ENTIRE HOUSE SPACE)=12.8
THEN TAKE $10,325.09 ( ENTIRE HOME COSTS) AND MULTIPLY BY 13% = $1,342.20
SUBTOTAL DEDUCTION: $1,342.20