Do you qualify for home-office deductions? Is that your principal place of business as an independent contractor, or a regularly used meeting place with clients or customers? Even an employee may qualify if his home is used at the employer's convenience. It's important to document the use; keep records of your work there.

Measure the office by room (one-tenth of the house, say) or by square footage. You can then deduct that portion of home upkeep expenses, including maintenance, mortgage and taxes - even depreciate a portion of the basis on your home. Be aware that depreciation deductions may be taxed when you sell your home.

Collect the documentation you need on expenses. IRS Form 8829, filed with your Schedule C (for self-employed individuals) indicates the sort of expenses that qualify. Employees with a home office get to take the write-off as a miscellaneous itemized deduction, subject to a 2-percent-of AGI floor.

It gets to be complicated. And that's where we come in - the tax folks at G M Hietpas CPA, LLC.