Do I qualify for the home-office tax deduction if I telecommute?
A good place to start looking for an answer is the IRS and its
publication titled "Business Use of the Home" - go to the IRS site
publications section and look for
Publication 587. While neither this publication nor the IRS site say much
about telecommuting, this publication is the best source of information at
least to start with. In general, the IRS has progressively tightened the
rules on home office deductions in the last 5-8 years. The rules for who
qualifies for a deduction, and the calculation for the amount of the
deduction, both got tighter.
In general, it is difficult for most telecommuters to qualify for the home
office deduction and even if they do, the rules about how to calculate its
value are likely to keep you from getting any big tax savings.
Your best bet - especially since for the tax year 1999 there are new IRS
rules that are SLIGHTLY more liberal - is to check with a qualified tax
advisor or accountant who can guide you better. You can find a description
of these home-office rule changes in the IRS summary
of major changes to the