Discussion 5

For people working from home, this article discusses two basic requirements to qualify for home
office deduction. If a person is self employed and using his home office for many years, he can
save considerable amount. However, he has to meet these basic requirements to qualify:
Exclusive And Regular Use Of Area:
The devoted space or home office use must be used exclusively for business purposes. That
means you cannot use it as a tv room, and house members cannot use it for other activities.
However the exclusive use test doesnt apply if the home is used for daycare provision or
storage facility where you store inventory. Regular use implies that if the room or space is used
only occasionally or incidentally, you fail this test.