More and more people are working from their homes. Telecommuters, small business owners, budding entrepreneurs and many others use at least a portion of their home for conducting business. Under such circumstances, it would seem right to be able to deduct some of the expenses for that home from taxes as a business expense. But the IRS has strict rules for making such deductions, and CCH’s tax editors note those rules are intended to keep taxpayers from deducting home office expenses in many instances. Properly using the home office deductions requires answering a series of questions and then furthering examining the answers to those questions to make sure the home office falls into the narrow definitions set by the IRS. CCH’s tax experts have prepared a detailed look at those questions and considerations in the latest edition of the CCH Guide to Car, Travel & Entertainment and Home Office Deductions.
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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products.