Publication 587 covers many other deductions, such as what you can do if you rent your home, repair your home, install a security system, have homeowners insurance, and many other things. It’s worth reading in depth.
Property Bought for Business Use: This part covers things like personal computers, copiers, flatbed scanners, printers, etc. that were purchased specifically for business use in your set-aside office area.
When I set up my home office, the first thing I needed to do was purchased some home-office furniture. First I bough a Mission-style desk that became the centerpiece of activity. To that I've added a bookcase from a yard sale, a file cabinet that was being disposed of by a bank, and a folding table for my notebook. My home office is not beautiful, but it is functional.
As this section of tax law is complicated, I'd certainly propose that you get some help from a tax professional in figuring out what is depreciable and what is deductible as an expense.
Recordkeeping: "You must keep your records for as long as they are important for any tax law." They then go on to suggest that three years from the return due date or the date filed, or two years after the tax was paid is sufficient.
Where to Pay: The rule states, “As an employee, you must itemize deductions on Schedule A (Form 1040) to claim a deduction for the business use of your home and any other employee business expenses."
To read the full text of the publications above, go to the IRS website and enter in the search field “IRS Tax Tip 2008-53" or “IRS Publication 587."
There are lots of other considerations involved in taking it home, like maintaining motivation, self-discipline, and enthusiasm outside a normal office environment. Working from home is not freedom, freedom, freedom as some of my friends have suggested to me. If you’re taking it home or already working from home, I hope you enjoy your work. Thanks for reading this.