Home Office Deduction
This course explores the federal income tax deduction for business use of a home. It covers the criteria for qualifying for the deduction, the methods available for calculating it, and special rules for specific taxpayers. Topics include the actual expense and simplified methods, unique provisions for daycare facilities, recordkeeping requirements, and the appropriate tax forms and reporting procedures.
This course explores the federal income tax deduction for business use of a home. Each year the U.S. Census Bureau publishes what it refers to as nonemployer statistics that may provide information about the increased importance of the business use of taxpayers’ homes. A “nonemployer,” for purposes of the statistics, is defined as a business that has no paid employees, has annual business receipts of at least $1,000 and is subject to federal income taxes. These nonemployers may be organized as corporations, partnerships or sole proprietorships. Because they have no paid employees, nonemployers are more likely than others to operate their businesses from their homes and seek a home office tax deduction.
Upon completion of this course, you will be able to:
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Apply the home-office deduction qualification rules;
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Identify the types of home office use to which the exclusive use requirement does not apply;
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Describe the various types of taxpayer expenses that may be used to support a deduction for business use of a home;
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Apply the rules applicable to the simplified method of figuring the home-office deduction;
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Identify the tax forms on which a home-office deduction should be taken; and
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Recognize the recordkeeping requirements applicable to documents supporting a taxpayer's home-office deduction.
