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Keep your home office picture perfect

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in Small Business Tax

Q. I work out of my home and have claimed home-office deductions for years. My new CPA says this is risky and that the IRS could inspect the premises in an audit. Should I be worried? J.S., Pompton Lakes, N.J.

A. Probably not. Assuming your return won’t be flagged for other reasons, it isn’t cost-efficient for the IRS to send an auditor to your home on a so-called field audit. However, if your return is audited, you might need to provide evidence of the home office by sending information through the mail. Tip: Take photos or video of the home office so you can prove its existence if the IRS ever challenges your deductions.

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