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Subject Author Date
Question about deductions pallav 08-10-2008
Posted by pallav on August 10, 2008, 8:48 pm
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Hi,

I have some questions about tax deductions.

1. I am a first-time home buyer. I understand there is a $7500 tax
credit (http://federalhousingtaxcredit.com) I will be eligible for in
2008 tax return. I plan to buy within the next 6 months. Are there any
other deductions/credits available as a first time home buyer? The
move will be in-state and the property would be about 5 miles from
where I currently live.

2. I teach in a university. During the semester, I am in the
university 2-3 days out of the week (when there are classes). The rest
of the time and during the summer (3 months), I work on my research in
my apartment (I have setup a small mini-office). Are there any
deductions I can make for using a part of my home space as an mini-
office? Note that I am not self-employed nor running a business.
During the day, I'll work on my research, do university work (answer
emails, prepare documents) etc etc in my home-office. At the night, I
might see a movie on the computer (located in the home-office).

For example, I read somewhere you can deduct a certain portion of
utility bills (my home computer is on 24/7 and it is a power hungry
machine (Mac Pro). I do notice a significant reduction in my electric
bill when this machine is turned off for a month (or only used say 2-3
hr/day)). Are there any other deductions I can make here?

Thanks for any information.

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Posted by Condor on August 10, 2008, 9:14 pm
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> 1. I am a first-time home buyer. I understand there is a $7500 tax
> credit (http://federalhousingtaxcredit.com) I will be eligible for in
> 2008 tax return. I plan to buy within the next 6 months. Are there any
> other deductions/credits available as a first time home buyer? The
> move will be in-state and the property would be about 5 miles from
> where I currently live.

See Kaye Thomas' write-up on Fairmark.com about the new first-time
homebuyer's credit. Your other questions are addressed in IRS Publication
530.

http://www.fairmark.com/news/08073001-homebuyer-credit.htm

http://www.irs.gov/pub/irs-pdf/p530.pdf


> 2. I teach in a university. During the semester, I am in the
> university 2-3 days out of the week (when there are classes). The rest
> of the time and during the summer (3 months), I work on my research in
> my apartment (I have setup a small mini-office). Are there any
> deductions I can make for using a part of my home space as an mini-
> office? Note that I am not self-employed nor running a business.
> During the day, I'll work on my research, do university work (answer
> emails, prepare documents) etc etc in my home-office. At the night, I
> might see a movie on the computer (located in the home-office).

If you are an employee, for starters your home office must be for the
convenience of your employer. Since the university furnishes you office
space, it's highly unlikely you will meet the convenience-of-employer
criterion.

For more information on home office deductions, see IRS Publication 587.

http://www.irs.gov/pub/irs-pdf/p587.pdf


Condor

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<< The foregoing was not intended or written to be used, >>
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<< >>
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<< to this newsgroup as well as our anti-spamming policy >>
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Posted by removeps-groups@yahoo.com on August 11, 2008, 12:34 pm
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> > 2. I teach in a university. During the semester, I am in the
> > university 2-3 days out of the week (when there are classes). The rest
> > of the time and during the summer (3 months), I work on my research in
> > my apartment (I have setup a small mini-office). Are there any
> > deductions I can make for using a part of my home space as an mini-
> > office? Note that I am not self-employed nor running a business.
> > During the day, I'll work on my research, do university work (answer
> > emails, prepare documents) etc etc in my home-office. At the night, I
> > might see a movie on the computer (located in the home-office).
>
> If you are an employee, for starters your home office must be for the
> convenience of your employer. Since the university furnishes you office
> space, it's highly unlikely you will meet the convenience-of-employer
> criterion.

But does the university furnish office space for the 3 months of
summer?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Dick Adams on August 11, 2008, 3:51 pm
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>>> 2. I teach in a university. During the semester, I am in the
>>> university 2-3 days out of the week (when there are classes). The rest
>>> of the time and during the summer (3 months), I work on my research in
>>> my apartment (I have setup a small mini-office). Are there any
>>> deductions I can make for using a part of my home space as an mini-
>>> office? Note that I am not self-employed nor running a business.
>>> During the day, I'll work on my research, do university work (answer
>>> emails, prepare documents) etc etc in my home-office. At the night, I
>>> might see a movie on the computer (located in the home-office).

>> If you are an employee, for starters your home office must be for the
>> convenience of your employer. Since the university furnishes you office
>> space, it's highly unlikely you will meet the convenience-of-employer
>> criterion.

> But does the university furnish office space for the
> 3 months of summer?

Your faculty space is available to you year round.

If your University has a Business School, talk to the
Tax Professors there for insights into deductions.

Dick

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Bob Sandler on August 10, 2008, 10:23 pm
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>At the night, I
>might see a movie on the computer (located in the home-office).

That eliminates any deduction for a home office. To take the
deduction, the home office must be used *exclusively* for
business. For more details, see the IRS publication that
Condor referred you to.

Bob Sandler

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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