Home Businesses in the News, an article review service from Home Biz for Retirees
Fox News published “Home Office can be a great tax deduction, if done right,” by Katie Jackson. She reports that many home-based business owners are not using this tax deduction for fear of triggering an audit.
Sherry Jackson, a former IRS agent, is the author of “Stick it to the IRS.” She advises home business owners to follow the rules with receipts to back up your expenses. She coaches people setting up their home-based business. “Everyone needs to check with his or her local government to find out if you need a license to operate your business from home.” The article provides more details with interviews from several experts.
Here is a snapshot of the article:
Click here to read the entire article
The article also explains that the home office tax deduction is a high-risk option, even when you have the tax records to back it up. I put this in because Fox likes to be “Fair and Balanced.”
As reported on this blog previously, the new home office deduction recommended by the IRS is a safer method to use. Click here to review that article.
There you have it. A complete report you can read online with interviews from several experts on taking the home office deduction. The main point to remember is you should work with your tax professional to ensure the proper legal business set up is in compliance with the law. Then you must file the proper tax forms with the IRS. Seeking advice from your tax expert is strongly recommended.
Yes, taxes can be a swamp that sucks you into a morass of legal troubles. But the IRS itself encourages you to take the deductions to which you are entitled. You just need to follow the rules and seek counsel from experts in this area.
That’s not news, but it is reality.