Log in Subscribe

The home-office deduction: What you should know

Posted 9/2/22

To take the deduction, the IRS requires the home office to be your principal place of business and it must be used exclusively and on a regular basis. According to the U.S. Small Business Association, just over half of the country’s small businesses are based in a home, but only a small number of taxpayers claimed the corresponding deduction.

The most common reason for not taking the deduction is the complexity of the paperwork (i.e., IRS Form 8829) taxpayers must file. A second reason for not taking the deduction is fear of an IRS audit, which may also be attributed to the form’s complexity.

This item is available in full to subscribers.

Please log in to continue

Log in