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Both now working out of 2 Home offices and need some advice.

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Money Talk > Taxes

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foodeefish
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Both now working out of 2 Home offices and need some advice.  Reply with quote  

My wife works out of her home office 90% of the year and I now will be working out of another room soon to be my office. I will work on average 75% of my time out of my new office and then be traveling for the comapny the remainder of the time to New York. We are in the 30-35% tax bracket

With gross income over $250K, and little to no tax write-offs (no mortgage either) does it make sense to write these costs off for tax purposes or is it a waste of time thanks to the "Minimum Tax" we get hit with?

What legally can we write-off if this makes sense?

Thanks

Foodeefish
Post Mon Aug 04, 2008 2:34 am
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coaster
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Expensing your home office can be a tricky deal, but there's quite a bit of info on the IRS website about what and how can be expensed. It sounds like you work for a company? Home office expenses are oriented toward self-employed. That's the only way I've ever done it, and that was 10 years ago. Be sure to also check on the IRS website whether employees can also expense home offices. There might be some kind of a provision that it's necessary to do it that way, as opposed to going into an office.

Seeing what impact itemizing your expenses will have on your taxes vis a vis the AMT is easiest if you use tax preparation software. If you can still find TurboTax or TaxCut around you might be able to get them pretty cheap because they're obsolete for tax year 2008, but still perfectly good for "what-iffing."

~Tim~
Post Mon Aug 04, 2008 3:58 am
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