- Before you can deduct any home office expenses from your taxes you must make sure that your office area qualifies as a home office by IRS standards. The home office must be used exclusively for business purposes, must be regularly used for business activities and must be your primary place of business or primary location for meeting with clients. An external structure on your property such as a shed or other outdoor building can also qualify as a home office so long as it meets these requirements.
- As garbage service is typically shared between a home office and the rest of the household, the full amount of garbage expenses cannot be deducted from your taxes. However, a portion of the expense can be deducted based on the amount of your home that is set aside as a home office. This deduction is allowed because it is reasonable to assume that a home office will contribute to the amount of garbage produced within the home.
- The amount of your garbage collection expenses that can be deducted for a home office is equal to the percentage of your home's total area that is occupied by the office space. To determine the amount, you should measure both the area of your office and the area of your home by multiplying the total length and width of each. Divide the area of your office by the area of your home, then multiply the result by your total annual garbage collection cost to calculate the amount you can deduct.
- The deduction of garbage collection costs for your home office is claimed as part of the standard tax return for your business. If you are self-employed, this is claimed by adding a Schedule C form to your tax return; the deduction is considered a portion of the profit or loss of your business. You must also fill out Form 8829 and attach it to your return, with the result in line 7 being added to your Schedule C.
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