Question about deductions

Hi,

I have some questions about tax deductions.

  1. I am a first-time home buyer. I understand there is a 00 tax credit
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    I will be eligible for in2008 tax return. I plan to buy within the next 6 months. Are there anyother deductions/credits available as a first time home buyer? Themove will be in-state and the property would be about 5 miles fromwhere 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.

Reply to
pallav
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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.

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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.

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Condor

Reply to
Condor

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

Reply to
Bob Sandler

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

Reply to
removeps-groups

The home office is just the portion of rent, utility bills, etc that is allocated to the office part of the home. But other deductions such as buying new computer parts, repairs for the computer used in business, office supplies used for business would be deductible.

However, it would be subject to the 2% of AGI limit, as well as AMT, so might be useless. If the original poster is in AMT then his income is probably too high for the first time homebuyers credit.

Reply to
removeps-groups

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

Reply to
Dick Adams

Allocation of personal expenses for home offices of W-2 employees when not for the convenience of the employer were not allowed the last time I looked.

If they were to be allowed, every clerk in the country would have a home office.

Plus without Schedule C income, home office deductions are unreimbursed employee expenses subject to 2% of AGI.

Dick

Reply to
Dick Adams

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