I run a small business out of my home, where I occasionally meet with clients and often receive deliveries. Every time it snows, I pay $20 to the kid next door to shovel -- and this weekend's blizzard will probably cost extra! Can I deduct what I pay him, plus the cost of the de-icing salt and shovels?
If you qualify for the home-office deduction, you can include these costs as maintenance expenses, says Clare Levison, a CPA in Roanoke, Va. You must use the regular method to calculate the deduction, based on your actual expenses, not the “simplified method,” in which you multiply the square feet of your home office by $5.
The amount you can deduct is prorated based on the percentage of your home devoted to your business activities. For example, if the space you use for your home office is one-fifth of the square footage of your home, then one-fifth of these expenses will be deductible. The same is true for utilities, rent or mortgage interest, and homeowners insurance premiums. “You should keep good records of your expenses,” says Levison. “It’s always best to get a receipt whenever possible.”
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Report these maintenance expenses on line 19 of IRS Form 8829, Expenses for Business Use of Your Home. For more information, see Instructions for Form 8829. To find out whether you qualify for the home-office deduction, see IRS Publication 587, Business Use of Your Home. Also see Most-Overlooked Tax Breaks for the Self-Employed.
-
Is Trump's Tax Plan Speeding Up the Looming Social Security Funding Crisis?Social Security Social Security's combined retirement funds are running out of cash, and its insolvency date is expected to occur in less than a decade.
-
How to Keep Your Work Friends After You RetireWork friendships can boost teamwork, lift your spirits, and make the job more fun. But when you retire, these friendships can fade. Here's a look at why that happens and what you can do about it.
-
New Trump Tax Bill: Five Changes Homeowners Need to Know NowTax Changes Trump’s new tax legislation is reshaping how tax breaks for homeowners work.
-
How the 2025 Child Tax Credit Rules Impact Single ParentsTax Credits New changes to family tax credits, like the Child Tax Credit, will impact the eligibility of some households.
-
How Your 2025 Wedding Could Save You Money on TaxesTax Breaks There are some wedding expenses that are tax-deductible, and you don’t want to miss out on savings.
-
Retirees Should Watch These Four Key Tax Changes in 2025Tax Changes This year brings key tax changes that could affect your retirement taxes and income.
-
Tariff Stimulus Checks Coming? New Proposal Seeks Tax Rebates for US WorkersTax Breaks A new GOP bill proposes to send $600 in tariff rebate checks to eligible taxpayers. Is there a catch?
-
Biggest Winners and Losers in Trump's New Tax PlanTax Law Trump’s mega tax overhaul, known as the ‘One Big Beautiful Bill,’ has distinct winners and losers. Which group do you fall into?
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund, a smaller one or something in between next year. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ PocketsTax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
