Hello and welcome to Money Girls Quick and Dirty Tips for a richer life.

I'm your host Laura Adams. The topic for this show is about the

requirements for deducting expenses related to a home office.

If you're fortunate enough to be able to work from home, you may have wondered whether you can

take advantage of tax deductions associated with having a home office.

Qualified deductions apply to both employees and the self-employed

who use any portion of their residence in connection with the trade or business.

Whether you work for yourself or for an employer,

your home office must meet some basic requirements to qualify for legal tax deductions.

The office must pass one of the following requirements as,

number one, your principal place of business. Number two, a place you regularly do

business such as meeting with clients.

Number three, a storage space for business purposes.

Number four, a daycare facility or five, a rental.

If you're an employee, you must also meet a couple more requirements.

As an employee, the business use of your home must be for the convenience of your employer,

not for your convenience, and you may not rent any part of

your home to your employer for business use.

So if your company provides you with a local office where you accomplish your primary work responsibilities,

but you choose to do some work from home in the evenings, your situation wouldn't qualify.

To qualify for home office deductions as an employee, you must perform substantial work activities from home as directed or approved by your employer.

Or you must be required by your employer to meet with customers, clients,

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