I am a freelance video editor, and I am looking at new office spaces. I'm wondering which type of office would give me a better tax deduction: an at-home office or out-of-the-home office space?
There is no “better” deduction in this case. The deduction would be the same, in that it would reduce, dollar for dollar, taxable income generated from your Schedule C (self-employment).
Pick the space that allows you to accomplish what you want to accomplish for your business success, not for the best tax deduction. That is the best choice.
For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.
Answered by: Joseph A. Pancerella, CPA, is managing director of Pancerella & Associates LLC in Reading, Pa.