Had you reported this income as an S corporation, your chances of audit 20%.
If you filed your business income and expenses as a proprietor in 2017 and reported $100,000 or more in gross receipts, your chances of IRS audit were 2.4 percent (2017 returns are still open for audit, so the percentage could increase).
Had you reported this income as an S corporation, your chances of audit were only 0.20 percent.
You have probably read that the home-office deduction increases your chances of IRS audit. We’ve read that, too, but we don’t believe it.
Regardless, let’s assume that you’re a little paranoid about audits, and you want to claim the home-office deduction in a way that doesn’t attract the attention of the IRS.
If keeping more money for your future appeals to you, please contact us, so we can look at your options to see if we should spend some time on your tax planning.
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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.
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.