When the subject of establishing a home office comes up, small-business owners often have lots of questions. Who can blame them? They’re worried about triggering an IRS audit.
One question we’re often asked at the Tax Reduction Letter is:
“If I have an office outside of my home, can I have a tax-deductible home office in my home?
The answer is a resounding “YES!”
Okay. We’ve given you a straight answer, but quite reasonably, you’ll want to know if we’re correct. And we understand you concern.
That’s why I’ve written this full article that backs up our answer.
Who can you turn to for definitive substantiation of our claim?
The best source of all. The IRS.
Keep reading and we’ll show you why, when it comes to home offices, you can have the best of both worlds … and inside and outside home office.
You’ll get all the details when you…
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“Home-Office Deduction—Show Me the Proof!”
Three ways our fact-filled article can help you:
- We’ll explain the basic rule that Uncle Sam says you must obey. Here it is in a nutshell. The office inside your home will qualify for the home-office deduction when you make it an “administrative” office. (This is true whether you’re running a proprietorship, a single-member LLC, a partnership, or a corporation.) What the heck is an administrative office? You’ll find out when you read the full article.
- We’ll provide you with a full explanation of the law. The best place to look for answers, not surprisingly, is an IRS publication. In this case, Publication 587. The material in the publication is definitive, and explains things very clearly. (This is not always the case with IRS documents!) To find out more, read this full article.
- We’ll tell you about the important Soliman case. The history of the legislation related to this case is rather complex. But if you’re still looking for proof that the claims we’ve made above, concerning home offices, is true, you can check out the results of the 1993 Soliman case. The bottom line is that this landmark case inspired lawmakers to establish your right to have an office outside the home and a tax-deductible office in your home. We’ll tell you the whole story when you read the full article titled…