I am a texas realtor, i work from my house, what home expenses are tax deductible?

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JerryM

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e.g. internet, light? etc..? I am a Texas Realtor, I work under a broker but from my own home. I know that realtor fees, advertisements, home office supplies and cell phone are deductible, but what about other services used for the business? I have to use internet for my job and electricity, would these services be tax deductible. What about gas and car services? Any professional advice would surely be appreciated!
 
If you use turbo tax or similar software, it will walk you through everything you can deduct.
Generally, let's say your house is 1000 sq ft (for easy math purposes) and your office area is 100 sq ft, that's 10% of your total home area. You get to claim 10% of your total utilities and such that include the entire house. Anything that's 100% office related gets deducted as well.
 
First, you have to make money at it, not every year; but at least 1 of 3, I think. Then the "office" has to be exclusively for business and you can prorate some utility expenses. I understand the IRS assumes the computer is mostly for recreation, so I think that's a hard deduction. You'd almost need a log of every time you used the computer. If you subscribe to some MLS or something that you pay for, that subscription could be deducted anyway.

The IRS says that taking the home office deduction doesn't increase your chances of an audit; but I've never met anyone who agreed with them: so you have to ask yourself: "Do you feel lucky?"

Will you lose that much if you don't claim the deduction compared to the feeling, right or wrong, that claiming it will increase your audit chance.
 
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