Many folks work from their homes.

If the office is qualified, you may deduct up to $24,000 for the cost of computers as well as a share of heating, cooling, and maintenance expenses of the home. To qualify, the home office must be an area used exclusively for business activity, and it must be the principal location used to conduct business or meet with customers.

The IRS is very strict in granting the home office deduction and has disallowed the deduction when it determined that a taxpayer kept personal correspondence in the same area used for the business.

If you are furnished another office you are not allowed to take home-office deductions. Review IRS Publication 587.