Posted by Mark-WV on February 20, 2003 at 09:43:49:
I agree with Peter and would add … if you don’t like audits leave the home office deduction alone !! I have been able to take the thing for years but don’t because when I did in the late “70’s” every year I was called in for a audit.
The amount it reduces your tax is small compaired to the headache that follows.
Just my .02
Mark
home office tax deductible? - Posted by Maria
Posted by Maria on February 20, 2003 at 02:49:53:
According to my CPA you are not allowed to deduct the costs of a home office as a landlord because one only uses a schedule E and not a schedule C for rental properties. Any comments?
Thank You!
Re: home office tax deductible? - Posted by lynn-Fl
Posted by lynn-Fl on February 20, 2003 at 20:18:26:
Cut and paste this address, which opens in pdf.
To read a plain English version:
http://www.nolo.com/ then type in “home office deduction” in the search function at the bottom left.
However, the posts here by Mark and Peter are good advice, as this deduction is considered one of the top three IRS “bullseyes” for audit.
Re: home office tax deductible? - Posted by Peter_MD
Posted by Peter_MD on February 20, 2003 at 06:57:43:
I agree with your CPA…he knows what he’s talking about.
…and it gets worse than that. When you have a Schedule C, the home office exclusion can only be deducted if it meets the “exclusive use” test.
Rely on your CPA. If you don’t feel comfortable with the answers, ask another CPA for clarification and a practical explanation (similar to a second opinion with a medical doctor).
If you find out your CPA is not providing you with accurate information, look for a replacement.
Just my opinion on the matter…