I rent a place and use the room overthe garage as an office. As this is a seperate space that COULD be used as living quarters that is acceptable for a tax deduction. Once you itemize tax deductions you should make sure that you claim everything possible:
– Percentage of rent
– Percentage of gas and electricity
– Percentage of waste removal
– Percentage of water
– Also keep a record of mileage in your car used for business purposes (trips to airport, clients) – that is deductable at $0.45 / mile or so.
Finally expenditure you make for the business (I bought a portable air conditioner this summer for example for the office).
I have also heard that the chances of audit are high, so keep it all clean and use CPA!
