Taking the Home Office Deduction? Read This - Galt's Gulch

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Taking the Home Office Deduction? Read This

Posted by mminnick 11 years, 8 months ago to Business

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read this article. If you have a home office, it might make you life a little easier.

SOURCE URL: http://smallbusiness.foxbusiness.com/finance-accounting/2014/02/21/taking-home-office-deduction-read-this/?intcmp=obnetwork

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Posted by Stormi 11 years, 8 months ago

My husband is a corporate CPA in taxes, but we have a small accounting business in the home - small businesses and such. We have a complicated Excel spreadsheet to keep track of the fact we have PCs in two rooms, a copy ;machine in another (spread the power use out) and we depreciate one car used for client visits. We also have a formula in the Excel sheet for pulling out a portion of the electric charge PC software purchases, telephone charge, etc. Of course, that is a long form return.

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Posted by CircuitGuy 11 years, 8 months ago

When we first got married and had an office in our living room, we actually deducted 25 sq ft of space. Now we both have our own separate commercial space. I still remember doing that home office deduction when we got started.

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  Posted by KahnQuest 11 years, 8 months ago
  
  I'm there now, though my office space is a whopping 144 sq ft. Good times.
  
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Posted by Robbie53024 11 years, 8 months ago

Thanks. Didn't know about this change, but I use H&R block tax software, and have only done the first cut on taxes for the past year. I didn't see this pointed out. Good to know.

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  Posted by nickursis 11 years, 8 months ago
  
  Robbie, I finished my first cut and there is a couple places where you do the Home Office thing. If you have a business, and use part of the home to run it in, and do the business part in the beginning, it has a whole series of questions on space, mortgage and taxes etc, then calculates it. Then in the very back in deductions, is a section that asks specifically about the Home Office. It says to qualify you must have it for exclusive use, be required by your employer and exclusively for that. I think the difference is in whether you are using part of your home for your own home business, vs having a "Home Office" you work from.
  
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    Posted by Robbie53024 11 years, 8 months ago
    
    Yes, I saw that when I did my first cut as well.
    
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Posted by Tippecanoe 11 years, 8 months ago

And will the IRS later want to send its (armed with AR-15 and hollow points) agents to your home, to see if that 'home office' qualifies? And inspect the rest of the house as well?

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  Posted by jimjamesjames 11 years, 8 months ago
  
  Probably not. My second wife's youngest sister married a CPA who had the same philosophy as me:
  "If you are not being audited, you are not trying."
  
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Posted by teri-amborn 11 years, 8 months ago

A few years from now, in a clear-cut case of Ex-Post-Facto, the IRS will go back in time, change the rules, and come after anyone who takes this deduction. Just wait and see...!

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