Tax Tips for Home Office Use

"Hi, I’m Tom Choisnet, enrolled agent; I’m going to go into a little bit about office in home. If the office in home is legitimate we have seen very little audit risk in this area even though we are told that it is a very risky thing to do. I have been doing this for many years and I have never seen any return singled out for office in home. So be fair with it, it should be the principle place of business for your business and you will be able to deduct allocated expenses for some of the upkeep of your home that can be allocated to the business in addition to deprecation. When you sell your home that deprecation is recaptured. One thing here that should be mentioned is that there has been recent legislation that makes it clear to where if you have meeting places or do business off-site that does not necessarily disallow the office at home and that makes it fine so if you are keeping good records that seems to the be the key in this area and it does have to be your principal place of work so don’t be afraid to take office in home. Thank you."