"There are many opportunities for taxpayers to perhaps fudge these numbers, which include underreporting income and overstating deductions such as home office deductions
and other office-related expenses."
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.
The IRS said that for tax year 2011, the most recent year for which numbers are available, more than 3.3 million people claimed nearly $10 billion in home office deductions
using Schedule C.
* "IRS Offers New Method for Home Office Deductions
," July 2013, page 30
KFRN-AM in Long Beach interviewed Melody Thornton regarding home office deductions
(For more information about home office deductions
, see www.irs.gov/uac/Work-From-Home%3F-Consider-the-Home-Office-Deduction.)
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.