6 results for tag: Home Office

Home-Office Deduction If You Operate as a Corporation

Question What does the IRS audit manual say about the home office for an individual who operates his or her business as a corporation? Answer You will be interested in two boilerplate explanations from the Internal Revenue Manual that examiners use to explain why the IRS is denying the home-office deduction: We [the IRS] have disallowed your deductions for office-in-the-home expenses because you have not established that it was for the convenience of your employer. Voluntary, vocational, or incidental use of part of your home in connection with your employment does not entitle you to a business deduction. If you rent all or part ...

Amplified: 10 Tax Strategies for S Corporations: What, How, Where

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Question In last week's article "10 Tax Strategies for Schedule C Taxpayers: What, How, and Where", you discovered 10 Tax-Saving Strategies for Schedule C taxpayers, and you also know exactly where on and in the tax return you should record these tax breaks. Do you have a similar resource for S Corporation Tax Strategies? Answer We do now, thanks to your question. In our new PDF titled “10 Tax Strategies for S Corporations: The What, How, and Where”, we provide you with 10 tax-saving strategies that will ...

14 Tax Reduction Strategies for the Self-Employed

It's a brand new 2022, 2021 has ended, and either you already have your 2021 taxes squared away or you're filing an extension so that you can figure out how to optimize your tax avoidance strategies for the new business you started during the COVID-19 Pandemic in 2021. Let's get your mindset and strategic thinking for 2022 heading in the correct direction with the following 14 Tax Reduction Strategies for the Self-Employed. Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo In this article, you will find some related articles that I've previously written with the nuts ...

IRS Income Limit Mistake on Home Office Deduction

Can you ever imagine that the IRS could ever be wrong? If the IRS were wrong, what would be your strategy? Situation You use the office in your home as the administrative office for your business. You use your downtown office as your sales or patient office. The downtown office is the office location where you make the cash register ring. Questions What percentage of your gross income comes from the office in your home? Why do you need to know this? Because the IRS Says... Pub. 587: In its home-office publication, the IRS says that because (a) part of your gross business income comes from your home office, and (b) ...

Can Home-Office Tax Deductions Include Garage Space?

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Do you claim a tax deduction for a home office? Should you include or exclude your garage space in your calculations of business-use percentage? Home-office tax deductions require a look at the garage and other usable space as possible positive or negative factors in the home-office calculation. This takes more than a sentence or two. You need to read this article because there’s more to the garage space questions and answers than meets the eye. Besides the garage, this article also touches on the unfinished ...

Know These Four Magic Business Mileage Rules

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo When you know the rules related to business mileage, you Protect yourself in the event of an IRS audit, and Pay less tax. Take Henry, for example. Before he knew the mileage rules, he deducted 30 percent of his SUV’s cost. Once he learned the rules, he deducted 92 percent. Or look at poor Mark; he lost almost all his vehicle deductions in an IRS audit. Be like Henry! Here’s how... Start with this brief four-question quiz on the mileage rules that apply to your business (regardless of business type). Quest...