Retirement & Financial Planning Report

If you run a part-time business out of your home now that you’ve retired? If so, new rules may help you take a home office deduction. In order to qualify, you must: (1) Use a space in your home regularly and exclusively for business; and (2) Make your home office your principal place of business. A relatively new law (effective January 1, 1999), made it easier to meet the second test. Now, even if you earn your money outside of your home –you advise clients in their offices, for example — you still can qualify if your home office is the only place where you handle administrative chores. If you qualify for a home office deduction you can write off a proportionate share of your outlays for utilities, security monitoring, trash collection, insurance, general maintenance, etc.