Taxpayer is self employed and lives with her boyfriend. She wants to take a home office deduction. She provided the expenses : mortgage interest, utilities etc. Taxpayer claims she helped pay the bills.
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If
If she meets all the criteria (exclusively an office) and she is an OWNER sure? (ask her to take photos of the "office" just in case IRS would question it?) I always try to explain to "new" clients that the home office deduction is not really worth the effort (and cost) and could potentially be a red flag for further review by the IRS (whether it actaully is or not?) Then they usually say, well just forget it then.... -
I think you do
your clients a great disservice when you "scare" your clients out of this deduction when they are legitimstely entitled to it. So what if it's a red flag. Are you here to help your taxpayer or the IRS? I would ask the client all of the pertinent questions to determine if he/she is entitled to this really good deduction. JMHO.Originally posted by luke View Post
PeachieComment
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I have never had a client audited for business use of home yet.
I do about 25 of them per year, for over over 10 years.
That is easily over 200 business use of home's with ZERO audit's.Comment
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I will disagree with the Georgia Peach in cases where the deduction doesn't save enough tax to cover the added fee I charge.Originally posted by Peachie View Post
(grin)ChEAr$,
Harlan Lunsford, EA n LAComment
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Sounds like she does not own the home. If not, but the office is used regularly and exclusively as a principal place of business then maybe she could consider amounts she contributes towards household expenses such as mortgage payment, utilities, etc as rent and take the appropriate percentage.
Then maybe I have misuderstood the post.Comment
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I so agree
in that case. Wouldn't want my T/P thinking I'm not looking out for their REAL bottom line. :-)).Originally posted by ChEAr$ View PostComment
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