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 you've claimed.
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 Aug.
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).
