Understanding Home Office Deductions

today's video let's talk about things that the gray area deductions let's just be very frank very open your home office yep all right how much how much of your home office can you actually deduct yep and just to say I don't like the great term as much I usually say and whenever I meet with people I talk about you know a home office and my which are kind of in a different category because I don't look at your bank account and see a cheque for home office for mileage okay so that's why I just got there kind of in a different bucket that you don't see out-of-pocket people use the gray term but I I don't know what the terminology is as well I mean these are any living areas it's not I mean there's written rules so it's really like you said it there are rules but there's different interpretation maybe there's different calculations you know for the vehicle if you're doing mileage none of that other stuff applies so I'll skip that but for office you know you already have either you're paying rent or a mortgage for wherever you're living so for Home Office if you have a dedicated office that you're doing you know just for you it's invoicing you know whatever that's where you work from you don't have an actual office so square feet of the office just say like a room like this is 200 square feet your home is 2,000 square feet pretty easy calculations 10% of your home then then you take your if you're renting your rent if you have insurance your insurance you probably don't have repairs and maintenance if you're renting your utility is you know if that totals up to five grand times that 10% calculation then that's how you determine your deduction or if you have them mortgage you know then you're gonna have more of a deduction normally because you have your real estate taxes mortgage interest on water insurance any repairs and maintenance you did to your home and utilities and then time to your same percentage there are some rules for office to have an office like this it has to be what they consider exclusive use okay meaning it's only used for an office but you don't have a treadmill