Second Office a Principal Place of Business?

5/28/2019

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When possible, you want to claim that your office in your home qualifies as a principal place of business, because this classification

gives you the home-office deduction, and

eliminates commuting from your home to your regular office.

Current law gives you two ways to claim your office in the home as a principal office:

First, as a principal office under the rules that the Supreme Court finalized in Soliman

Second, as a principal office under the alternative after-Solimanrules, where lawmakers added this alternative: “... the term principal place of business includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business”

Question for you: If you have an office downtown where you spend 40 hours a week, can you claim that you have an office in your home that qualifies as a principal office if you spend only 12 hours a week working in the home office?

If you said no, could you also be wrong?

If you would like to discuss how this might work to your benefit, please call me on my direct line at 262-358-8297. We can help you with a Tax Plan.

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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.

Keana founded this website and decided and created this blog page to offer a space for those seeking knowledge to understand, however not to be confused with advice or planning strategies.

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