Architecture Zone at SavorTricities

In summary, Uncle Sam allows you the following additional tax deductions for having a home office: You can prorate your utilities by the square footage. That means your office square-footage versus the home’s total squarefootage.

You may also be able to depreciate computers, business machines, and office furniture. However, it’s important to clearly set aside the area you use for business. You can’t put a filing cabinet in the family room that’s used for watching TV and call it an office.

Thanks to broadband technology and laptop computers, more people can work at home and leave the commuting to the rest of the world. To encourage this, Congress passed the Taxpayer Relief Act of 1997, which contained a modification of the IRS definition of ‘‘principal place of business.’’