Time to clear up some common home office misconceptions!
The path to the home office deduction has pitfalls to avoid and hurdles to be cleared!
A home office deduction is similar to a marble labyrinth
Part I: Requirements
#1️ The home office must be used exclusively for business purposes.
🐣 Basics
♠️ All-Or-Nothing
🤏🏻 Some de minimis personal use is allowed, but not much
😖 Don't confuse minimal use & de minimis use
📸 Visual
🙋🏻♂️ Exception #1: Storage of Inventory or Product Samples
#2 The home office must be used regularly.
🐣 Basics
👩🏻⚖️ Tax Court Case Results
🚨 Beware!
#3 Four types of home office spaces
🏠 Principal Place of Business
🤝🏻 Physical Meet & Greet
🏢 Separate, Detached Structure
📦 Storage of Inventory or Product Samples
Part II: All is Not Lost
You might be discouraged into thinking that the home office deduction is not obtainable, but there are aspects that can work for the taxpayer.
#4 'Principal Place of Business' Home Office is Extra Special
🎒 Why it is extra special
🚗 Commuting miles 101
😄 Result
🚗🚗 Additional miles
#5 A Tiny Office is Okay
⬇️ Small Space, ⬆️ Big Deductions
🚫 No Walls Needed
🤏🏻 You Can Have a One-Square-Foot Office
🚨Most Important Takeaway
#6 A Second Work Area is Beneficial
🙌🏻 Supports Your Case
👨🏻💼 Change Your Behavior
#7 Three Methods to Calculate Office Space
#8 What is Deductible?
📃 List of Home Office Deductions
🔍 Fine Print
🌱 Special Note About Lawncare
Part III: Speical Situations
#9 More Than One Business
🥈Second Business
🧑🏼🤝🧑🏾Spouse Invasion
🏫 Planning Tip
#10 S Corporation Employees
🏢Additional Requirement: Convenience-of-the-Employer Rule
🏫 Planning Tips
❌ What Not To Do
✅ Best Method