Personal business: Tax tips for EEs: Can you deduct residential expenses for doing business at home? New provisions of the tax law are explained

Many electrical engineers have become accustomed to claiming deductions on residential expenses incurred from doing business in their homes. For some, an office at home is merely an extension of the workday — they can justifiably argue that they cannot suddenly turn off their creativity when the clock strikes five and, therefore, their salaried income should be prorated against their office-at-home expenses. Other engineers claim deductions based on consulting done out of their homes to supplement their income. Under the new Tax Reform Act of 1976, some of these deductions may still be possible, but significant changes written into this legislation necessitate a careful review of what is — and what is no longer — possible.