A home-office deduction can be extremely valuable, but many taxpayers worry that the deduction will initiate an IRS audit.
That’s a pity. You see, if you handle things correctly, you’re entitled to the deduction and should take full advantage of it and put your worries aside.
In fact, new rules on the home-office deduction let you create a “principal office” right in your home.
This delivers important benefits as you’ll discover when you read my new article titled Tax Tips: When the Second Office in the Home Is a Principal Place of Business.
Three ways our fact-filled article can help you:
- You’ll learn why using your home office as a principal office makes a lot of sense. For starters, you’ll be able to deduct a portion of your home expenses as business expenses. Plus, trips from your home office to your downtown office count as deductible business trips. You’ll get all the details when you read the full article.
- You’ll learn about the landmark Soliman case. For many years, the law under Soliman made it tough to establish an IRS-approved home office. But in 1997, lawmakers added words to the law that dramatically changed things for the better. All will be explained when you read the full article.
- We’ll tell you why there’s another approach you can use that will keep Uncle Sam happy. Lawmakers made Soliman just one of two tests you can use to qualify for the home-office deduction. Test #2 allows you to qualify your home office as a principal place of business when you use it “for the administrative or management activities of your business and don’t use any other fixed location to conduct substantial administrative or management activities of that business.” We’ll explain everything in easy-to-understand language when you read the full article.