Home office deduction requires negotiating many hurdles, obstacles

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.

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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