A reader recently made an interesting point regarding an article on home office deductions. It concerned the issue of a taxpayer’s “principal place of business” when he or she doesn’t have a primary business location.
Strategy: Follow the letter of the tax law. If you conduct administrative duties at home and you have no other fixed location where you conduct such activities, you can qualify for home office deductions.
The rules in this area were changed by the Taxpayer Relief Act of 1997 in the wake of a landmark Supreme Court case. (Soliman, 506 U.S. 168, 1/12/93) Now it’s easier for self-employed individuals to take write-offs.
Here’s the whole story: You may be eligible for a home office deduction if your home is your principal place of business (meaning the place where you conduct most of your income-earning activities) or the place where you meet or deal with customers, clients or patients in the normal course of...(register to read more)