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Reminder for 10/20/2021 Seminar: Economic NEXUS vs Sales Tax NEXUS – learn more and become better prepared to ask and answer the tough questions, such as:

  • What does it mean for out-of-state sellers?
  • How or will this decision affect more than just sales tax nexus?
  • What does economic nexus mean for sales tax?
  • Does having a physical presence in a state still matter for sales tax?
  • Is the traditional nexus for sales tax still alive and well?
  • Do we need to begin filing in the 45 states that have a sales taxing system?
  • When to recommend to a client to file income/sales tax in that state?

10/20/2021 Seminar on Business Ethics & NEXUS

10/6/2021 Seminar on Employee Retention Credit, Tax Updates & Business Ethics


Is Your Home Office a Tax Deduction?

Many individuals have home offices, but are unclear on whether or not they can claim these home offices as tax deductions. The IRS explicitly states that home offices can be deducted from your taxes. However, they are also very clear that this home office can only be used for work-related purposes. It must also be used regularly for work-related purposes (meaning it cannot be a spare room that you happen to do some work in now and then).

Is your home office suitable for an IRS deduction?

If so, then it is worth exploring how to claim the home office on your taxes. Self-employed individuals can do this when they file their tax return. If you are an employee of a business it is necessary in case of an audit to be able to prove that your home office is for the sole benefit of your employer.

Necessary Information When Claiming Home Office Deduction

There are a few necessary steps when claiming your home office. These steps include:

  • Providing the area of the room that is used exclusively for business.
  • Providing the total area of your home.
  • Calculating the percentage of your home which your home office takes up.

You will also need to have on hand your mortgage payment, household expenses, and other similar expenses.

Use Caution When Claiming a Home Office Deduction

You should absolutely claim any eligible home office deductions. Doing so can significantly lower your tax liabilities. Be sure to keep all receipts and other relevant information on hand just in case.

Call us with any questions about claiming your home office as a tax deduction. We’ll be happy to take a look at your situation and see what we can do save you more money.