Home Offices eliminates commuting mileage and a provide a tax benefit. That’s the result you achieve when you claim an office in your home.
To qualify for the home-office deduction, you must use the office exclusively for the business or businesses for which you are claiming the deduction.
Your ability to qualify for the office-in-the-home deduction is straightforward if you have no spouse and only one business. But add a spouse or another business to the equation and this deduction can become more complicated.
If you are going to have more than one business use of your office in the home, make sure each business use separately qualifies on its own merits for the home-office deduction.
If you are married, all uses of the same office by the spouses must be deductible uses or the office fails the exclusive-use test.
It's just that simple! The IRS will disallow your home office deduction if you don't follow these rules.
As your business continues to grow, I wanted to make sure that you were aware of these rules.
If you find any of the rules above concerning, please don’t hesitate to contact us for a business consultation. We will put together a tax plan for you.
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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.