Since long before the Coronavirus pandemic, a great number of freelance workers have been working from home. When you have just started your freelancing venture, it is essential to understand the industry, its challenges and the perks associated with it. Little might you know that, if eligible for the home office deduction, you can save a significant amount of money on taxes. Affordable accounting for freelance workers can make it even easier for you to obtain such tax benefits! This said, the following is a list of points to help you understand whether or not you are eligible for the home office deduction. Read on in order to become informed.
- Designated Space
In order to benefit from the home office deduction, the IRS requires you to dedicate a particular space in your home that only serves as your home office, which you cannot use otherwise for anything else.
- Consistent Use
You must be using the workspace in your home consistently. If not, IRS rules will prevent you from wielding any home office deduction.
- Streamlined Home Office
It is crucial to make sure that a significant amount of your work takes place in your home office. You would not be eligible for this deduction if you primarily work, say, from a coworking space or from another [business] office.
Hopefully, all of the points articulated in this blog are substantial enough for you to assess whether or not you can claim a home office deduction on your next income tax return. If ever you feel that your freelancing business is in dire need of accounting services, it is gently advised that you reach out to Agro Accounting CPA. Seek out and gain their affordable accounting for freelance workers. The CPA professionals at this firm have commendable experience and can absolutely help you streamline your accounting in a prompt, efficient manner. Connect with the official site of Agro Accounting CPA, http://www.agroaccounting.com, in order to find out more details.
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