Home office deductions at tax time can be a beautiful thing, however you’d better be careful if you use them. While justified expenses are truly an expense that should be deducted, the IRS will cast a close eye on those using home office deductions. From Reuters, you’d better watch out,
Exclusive use. The home office must be a designated home office that is used exclusively for the trade or business. You can’t deduct a guest bedroom that is used half of the year by your in-laws. There are some exceptions to this, such as daycare facility use (with some special rules), certain storage use and rental use.
Remember while the deductions are okay, they can be risky. This link to the IRS provides very specific instructions on home office deductions.‘
Photo from wine press for words.
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