Thursday, April 3, 2008
TAX TIP: HOME OFFICE
Every writer who spends some time working at home can now claim a home-office deduction on their tax return. Under the new rules, a home office qualifies as a principle place of business if (1) the space is used to create substantial work, and (2) the space is used exclusively and regularly for business. The IRS lets you decide how much is “substantial.” With so many people telecommuting and working at home these days, the old fear that claiming a home office with automatically trigger an audit is no longer an issue.