Second Office a Principal Place of Business?

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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?
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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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