Tax Breaks for the Home Office
Good news is in store for clients who have a part-time home office. The IRS has changed their way of thinking in allowing anyone who does part of their work at home qualify for certain deductions.
Before now, the Service was very strict in saying that the home office had to be the principal place of business--which had been interpreted as the only place of business.
But in a move signaling again a paradigm shift for the Service, anyone who spends time in a home office doing paperwork or handling other matters may now qualify for at least some deductions. This is especially important for professionals who bring work home to complete because they cannot find time to do so during the regular work day.
The changes are reflected in the Taxpayer Relief Act of 1997.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.