The home office deduction has a reputation for being an audit red flag. The record-keeping hassles of the home office deduction have scared many away over the years. Also, there is a depreciation recapture provision that could mean higher taxes if you sold your home after taking the home office deduction. The following information will give you a basic understanding and simpler way to take the home office deduction. For the home office deduction to apply, your home must be your principal place of business for that trade or business.

Source: Forbes March 09, 2018 17:48 UTC