One of the basic truths for any taxpayer wanting to claim a deduction for business use of the home is, the office area must be used 100% for business purposes. And 100% business use means 100%. But is that really always true?
The general rule with home office deductions is that the deduction cannot generate a business loss. But there’s an exception to this rule.
It’s a holiday week, so I’m re-posting popular stories from the past. This blog post from more than 4 years ago is one of the most popular posts I’ve ever written. —– Originally published July 30, 2011 A question that comes up frequently from people with home-based businesses is if they can deduct mileage driven […]
Employees can take a home office deduction but there are hurdles to clear. Some tax preparers don’t seem to understand this.
A taxpayer recently won in Tax Court in a case involving the home office deduction for an employee.
Home Office Deduction: IRS Offers a Simplified Calculation Option, But the Qualifying Rules Haven’t Changed
A new wrinkle has been added to the calculation of the home-office deduction, but the rules to qualify for the deduction have not changed.
Kay Bell at the Don’t Mess with Taxes blog reminds us that there can be an unexpected, negative tax consequence to taking the home office deduction on a tax return. Someday when the house is sold, any depreciation that a taxpayer has taken through the home-office deduction gets taxed at a 25% rate. What about […]
Home-based business owners can deduct mileage driven to and from their home office – in some circumstances. It all depends on if your home is your “principal place of business,” which isn’t as easy as it sounds.
Many in-home daycare providers wonder about the home office deduction. This article will explore the rules for qualifying for the deduction, and how to calculate the deduction. Do You Qualify? You qualify for the deduction if you are a licensed daycare provider. If you are not licensed, you can still qualify for the deduction but […]
The IRS has posted a video to its YouTube site that talks about the home-office deduction. You can find the video here.