Check homeowner’s association rules before setting up a home office.

While the tax law lets you write off the costs of using a portion of your home for business, proceed with caution. If your residence is part of a homeowner’s association, the rules may bar or limit your ability to run a business from home. For example, you may not be able to have more than two employees. If you use a home office when the rules say no, you risk being forced out when neighbors complain and face association penalties as well.