If you're paying 40 percent of your income in taxes, and claim $10,000 in home expenses, you'll save $4,000 in taxes, "a significant savings," she said. "You have to keep very good records to use the home-office deduction, but it's worth it."

Ken Kohut is a photographer in the digital age, so he doesn't have a darkroom, and he photographs his clients at parties, bar mitzvahs and corporate events, so he doesn't have a studio or showroom. Among the eligible expenses: properly taxes, homeowner's insurance, heat, electricity, water, garbage, sewer fees, condo fees, mortgage interest and home repairs.

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Home office deduction