Home Office Deduction?

When can you take a home office deduction?

QUESTION: A listener asks what tax advantages there are when using a home office tax deduction.

ANSWER: Read what Norm Rollins says:

The home office tax deduction is a big red flag to the IRS.  You can take a percentage of utilities, mortgage interest, property taxes and deduct that.  But usually the amount you get to deduct is not worth the tax savings.

The IRS is going after “mom and pop” sole proprietorships more and more in order to audit.  The IRS sees it as something that people are taking advantage of and you don’t want to get the IRS on your back – the deduction is not worth the trouble.