The home office deduction is one of the most valuable deductions available to freelancers. It can be claimed by anyone who conducts their business from the premises of their home.
As an artist, painter, makeup artist, illustrator, DJ, Etsy seller, graphic designer, or animator, you are eligible to claim several deductions like- travel, meals, inventory, vehicle and transportation costs, equipment, art supplies, home studio expenses, legal and professional fees, health insurance, gallery costs & commissions, and more.
However, out of all these deductions, the home office is the most advantageous of all. The home office deduction offers you a tax write-off for items such as mortgage interest, rent, utilities, real estate taxes, maintenance, repairs, and other related expenses. These deductions can prove to be very valuable, depending on how much you pay for housing.
As an artist, you can claim the home office deduction if you use a spare bedroom as a studio space. You can also apply for it if you use the spare room as a storage space for your art supplies, paintings, and canvases. The deduction amount relies heavily upon how much of the house is devoted to your artistic work, to do that, you will be required to keep detailed records and to calculate the square footage of your workspace.
To reduce your burden, you can use a tax engine like FlyFin. The app will help you perform the calculations and make the right decision for your home office since it is powered by AI and backed by CPAs whom you can consult to determine which method works best for you.
Want to know more about FlyFin? Head on over to https://flyfin.tax/blog/is-working-from-home-tax-deductible