New Windows as Home Office Tax Deductions
When you run a business out of your home, the home office tax deduction is often quite a tempting thing. Best of all, by taking the home office tax deduction, you are also setting yourself up to be able to deduct things like maintenance and upkeep.
So how about those new Andersen Renewal windows of yours? Are they tax deductible?
If you are claiming the home office deduction, a portion of the cost of the new windows may be deductible as well. The way the home office deduction works is that you deduct a portion of your rent or mortgage each month according to how much space is used for your office. One way of doing it is to figure out the square footage and deduct a percentage of your rent as your home office expense. Another way is to determine a percentage according to how many rooms out of the total you are using — for instance, 20 percent if one room in a five-room apartment is being used for an office.
By claiming a percentage of your rent as your home office deduction, you are also able to deduct that same percentage of utility bills such as heat and electricity, and repairs or maintenance bills… Such as new windows!
So yes, if you just installed new casement windows you should be able to deduct as a business expense the same percentage as what you’re using to determine your home office expense. However, as a word of warning I would also recommend that you use caution in what you claim as a business expense. Even 20 percent of the new French doors on your bedroom balcony probably won’t count toward your deduction… But be sure to consult a tax attorney or an accountant, as you never know what deductions you may be misusing!
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Great blog. I work out of my home and as tax season approaches I’m thinking about possible deductions. I never thought about the window issue, but after reading this blog I have a greater understanding of some of the things I can deduct. I have a home office in a spare bedroom, so now I can consider upkeep of that room as a possible write off. Thanks for this timely blog.