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Heres a closer look at when rent is tax deductible.
Is Rent Tax Deductible for Personal Use?
A big benefit to homeownership is that it offers several tax benefits.
While you may not be able to deduct rent onfederal income taxes, there are possible state exceptions.
If you pay rent on a primary residence, you might be able to claim a state tax credit.
Many states offer a renters credit, but not every state does.
How much money you might get also depends on where you live.
There are also certain requirements you must meet to qualify, which vary by state.
When Can Rent Be Deducted for Business Use?
You may also take deductions if the dwelling unit is the sole fixed location of the business.
You cant deduct business expenses for part of your home that you use both forpersonal and business purposes.
Next, calculate your deductible expenses.
Youre also limited to a maximum deduction of $1,500.
Heres how it works:
For example, lets say your home office is 250 square feet.
According to the IRS, deducting utilities, maintenance and insurance can help you maximize savings.
You may not deduct expenses for parts of the home not used for business.
For example, you cannot deductlandscaping expenses or maintenancefor other areas of the home.
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