Home Office during Kung Flu? Don't expect to write it off...

[K Frame]

Ouch. This is the first I've heard about this, and it has the potential to snag millions of people, including a LOT of people I know.

https://www.cnbc.com/2022/03/21/you-probably-cant-write-off-your-home-office-on-your-taxes.html


I got snagged in a different write off issues... I hit the cap on SALT deductions and lost out on almost $1,000 in deductions because of that.

[Kingcreek]

According to my CPA (a retired IRS agent) any home office deductions are a red flag that will get you under their microscope. He said it used to be real common and was abused for years but unless your a real estate agent working out of your home or something similar without another location it’s gonna get their attention.

[HankB]

According to my CPA (a retired IRS agent) any home office deductions are a red flag that will get you under their microscope. He said it used to be real common and was abused for years but unless your a real estate agent working out of your home or something similar without another location it’s gonna get their attention.

Some years back one of my neighbors - a home builder - applied for a zoning exemption for his home office in a residential area. No supplies, customers or employees were coming to his house, but he still wanted to be "on record" for the zoning exemption. I found out because - as a neighbor - I received an "official" notice of his zoning exemption request.

I figured he was deliberately creating a "paper trail" so he could defend a home office "write off" if or when the IRS questioned it.

Otherwise, with no business traffic, how would anyone know he's doing business paperwork in his back bedroom?

[Jim147]

As a sole proprietor they never questioned my home office. I'm sure they have been flooded with them the last couple of years and love going after the little guys. 

[Fly320s]

All of the IRS deductions are a scam anyway.  Just charge me a flat 15% and call it done.

[Northwoods]

Didn’t even think about trying to write off my home office.  It’s definitely not a purely dedicated zone, and we haven’t bought anything specifically because I’m working from it, so the “juice ain’t worth the squeeze” to try writing it off anyway.

[K Frame]

According to my CPA (a retired IRS agent) any home office deductions are a red flag that will get you under their microscope. He said it used to be real common and was abused for years but unless your a real estate agent working out of your home or something similar without another location it’s gonna get their attention.

Yes, that's always been true. It's why I've never tried to write off my home office, even though I've done as much as 1/4 of my work from home at times over the years.