If you have taken advantage of deducting your home office expenses from your taxes, or are thinking about it, this article is for you.

It’s a complicated procedure to determine how much you could actually deduct.  And it’s long been suspected that doing so increases the likelihood of an audit.  But if you meet the requirements you should absolutely do it.

As most of you reading this article are affiliate marketers, it’s likely that your home really is your office.  It’s also likely that this office does not require four rooms of your house, so don’t get excited that you’re going to deduct all of your rent or mortgage.  The amount of the deduction is tied to how much space your business occupies in your home.

Karen Klein conducted an interview with Kathy Pickering of the Tax Institute, the results of which appeared on Bloomberg BusinessWeek.com.  They discussed how to determine if you qualify for the deduction and the amount of deduction you should claim.

To qualify, your primary place of business has to be a portion of your house or a structure on your property (a garage for example.)

If you meet these requirements, here’s how it works.  Let’s say your apartment is 1,000 square feet and you use your dining room as your office.  It has a file cabinet, a printer and a few other things.  And it’s 150 square feet.  So you can deduct 15% of your rent/mortgage, insurance, depreciation and utilities.

Document all your expenses.  If audited, you’re going to have to prove all the items you deducted.

Before taking advantage of the home office deduction, you should consult your tax consultant.  We do not qualify as one.  This article is for general knowledge purposes.  Additionally, a tax consultant may be able to identify other tax deductions that you qualify for.