Some taxpayers may endeavor to shift property taxes to business entities where the restrictions do not apply, and other might consider claiming home office deductions
to obtain more deductions.
These audits might be more far-reaching, or the examiner might want to check on something specific, such as home office deductions
213, an accountant who provided bookkeeping and tax return preparation services was not entitled to home office deductions
she split between her two residences.
3 million people claimed nearly $10 billion in home office deductions
using Schedule C.
KFRN-AM in Long Beach interviewed Melody Thornton regarding home office deductions
All these changes mean practitioners and taxpayers would benefit from refamiliarizing themselves with the rules that apply to home office deductions
For more information about home office deductions
, see www.
From handling vehicles and travel, meals, and inventory to claiming business losses and legitimate home office deductions
, these important guides explain all the basics.
Chapters cover landlard tax classifications, deduction of operating expenses, repairs, depreciation, interest, start-up expenses, home office deductions
, car and local transportation expenses, travel expenses, hiring help, casualty and theft losses, additional deductions, vacation homes, deduction of rental losses, record keeping and accounting, Schedule E, and claiming deductions for prior years.
Even though the government loosened restrictions on home office deductions
in 1999, make sure you can substantiate that business area of your home if asked.
Notable regulatory barriers include complex IRS rules on home office deductions
and the complicated test for determining independent contractor status.
For small businesses especially, there are a number of applicable deductions which many tax preparers often miss from home office deductions
to self-employed health insurance to personal assets converted to business use (see Top Ten Most Often Missed Business Tax Deductions).