TAX TIP OF THE DAY...
Deduct your home office. A nasty rumor has been circulating for years that the home office deduction is a red flag for an audit. This is completely FALSE. Take the deduction!
The home office deduction benefits a) unincorporated businesses b) certain rental properties and c) employees working from home 5 days. Note: Employees working from home just some of the time can receive partial tax benefits.
1) Use the number of rooms method for larger deductions.
2) Skip the simplified method for larger deductions.
3) Don't forget to deduct personal items converted to business.... desk, computer, lamps, telephone, carpet, wall hangings, bookcase, etc.
4) IRS rules in this area are very complex and filled with exceptions & superceded rules. Send me an email and I can advise if you qualify.
5) Discuss with a CPA how future capital gains may be affected.
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