TAX QUIZ on Home Office Deductions

  Q. Who is entitled to take home office deductions?

  a. A college professor who grades papers in a home office.
  b. A self-employed attorney who converted an unattached garage into an office and meets clients there.
  c. A plumber who uses a guest room to do paperwork.
  d. An architect who sets up a room for occasional telecommuting.

The answer is b 

Although the rules on home office deductions have been eased in recent years, you still must 

use the office regularly and exclusively for business purposes.

The IRS has specifically denied the home office deduction to teachers, including college professors. And employees, like the architect, are only allowed deductions if working at home is required by their employers. The plumber also doesn’t qualify because using a guest room part-time is prohibited. The only winner here is the attorney because the tax law allows deductions for separate structures set up on a taxpayer’s property as a home-based office.

Ask your tax adviser if you qualify for a deduction

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