Home Office Deduction ON DEMAND

Overview

The data supplied on nonemployers show a generally increasing number of these businesses. Although they have no paid employees, they account for significant receipts. In 2004 they produced receipts of $887 billion; by 2018, those receipts had grown to $1.3 trillion. Clearly, the likelihood that any tax return preparer will be required to prepare a taxpayer’s tax return with a home office deduction is significant and is becoming more likely each year.

Highlights

Qualifying for a home office deduction. Figuring the home office deduction. Deducting and recordkeeping.

Prerequisites

None.

Designed For

CPAs, financial professionals, enrolled agents, and attorneys.

Objectives

Recognize the general requirement for exclusive use applicable to home-office deduction and the exceptions to the requirement. List the requirements that apply to a taxpayer’s qualifying for a home-office deduction for purposes of storage of product samples or inventory. Identify the conditions a taxpayer must meet in order to qualify for the exception to the exclusive use rule when operating a daycare facility. Recognize the factors that must be considered to determine if a taxpayer’s home is the principal place of business for purposes of the home-office deduction. List the exceptions to the requirement that a home office must be the taxpayer’s principal place of business in order to qualify for a home-office deduction, and more.

Preparation

None.

Notice

None.