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We have a small business and operate it from a home office. An enrolled agent recently told us that he does not claim home office expenses even though he has a home office for his business. Would it be better for us not to claim one also?

Last Updated: July 26, 2010

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Generally small business owners with a home office can claim some deductions on their taxes for the space and items that are dedicated to supporting the business. The key word is dedicated. If you have multiple (i.e., personal as well as business) uses for the office space and equipment, you may not be able to claim deductions. Though a tax adviser is a good person to consult on the specifics, you can also educate yourself at the Internal Revenue Service Web site or by calling the IRS and speaking with an agent or by visiting and speaking with someone in person at your local IRS service center. Begin by taking a look at these publications: Business Use of Home and Deducting Business Expenses.

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