SANTA ROSA – Many sole proprietors shy away from taking the home office deduction because they think it’s a red flag for a tax audit. However, there’s no reason you shouldn’t be taking every legitimate deduction you’re entitled to. Additionally, there may be more tax-deductible opportunities available to you than you realize.
A home office isn’t the only instance where a part of your home is considered tax-deductible. The fact is, you can deduct any area that’s designated exclusively to work-related activities or supplies. This includes partial rooms (for example, if your home office is in your dining room) or even a closet that’s used to store work-related materials. Likewise, if you park your work truck in your garage or use part of your garage to store work-related equipment, this also counts as tax-deductible square footage.