Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
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Answer Tax QuestionsCan I claim a home office expense?
Asked Monday, November 28, 2011 by an anonymous user
To deduct home office expenses you must prove that you use the home area "exclusively" and on a "regular" basis as a place of business to meet or deal with clients, patients or customers in the normal course of your business or if you spend most of your working time there and most of your business income is attributable to your activities there. Also it must be a separate structure with no personal use. Exclusive use means solely for business so spare bedrooms or use of a den have been challenged by the IRS.
Do I lose any of my home sale exclusion if I claim a home office deduction?
Asked Monday, November 28, 2011 by an anonymous user
You will not lose any of the $500,000 (married filing jointly) 250,000 (non-jointly filed return) residence sale exclusion if you previously claimed a home office deduction.
However, any depreciation taken after 5/6/97 must be recaptured at a rate of 25%.
You cannot avoid this recapture by not claiming depreciation as a deduction in a given year.
However, any depreciation taken after 5/6/97 must be recaptured at a rate of 25%.
You cannot avoid this recapture by not claiming depreciation as a deduction in a given year.
Can I deduct storage space in my basement as a home office deduction?
Asked Monday, November 28, 2011 by an anonymous user
If space is used on a regular basis for the storage of inventory or sample products you can deduct home office expenses even though you use the space for personal purposes and do not meet the exclusive use test.
Can I claim home office expenses for a day care facility?
Asked Monday, November 28, 2011 by an anonymous user
A person who does not meet the exclusive use requirement because the use is for a day care facility will still qualify to deduct expenses as a home office. The day care must be for children, handicapped persons or persons 65 or older. You must have a license, certificate registration or other approval as a day care center under state law.
What is the current year IRS Meal Allowance?
Asked Monday, November 14, 2011 by an anonymous user
For travel within the US the 2011 meal allowance is $46 a day. But higher rates apply to certain high cost areas designated by the government. These higher rates can be found in IRS Pub 1542 at www.irs.gov/formspubs/index.html or www.gsa.gov and click on per diem rates.
Are my meal costs deductible?
Asked Monday, November 14, 2011 by an anonymous user
To be deductible, meal costs must be incurred while away from home. The away from home test requires that the person be on a business trip that lasts longer than one business day and requires time off to sleep before returning home. Meal costs while away from home are subject to the 50% deduction limit.
Temporary place of work
Asked Monday, November 14, 2011 by an anonymous user
The IRS considers a work location temporary is one at which the employment is realistically expected to last and actually does last for a period of 1 year or less. A worker can deduct their unreimbursed costs of driving to temporary locations.
Are travel costs deductible from my home office?
Asked Monday, November 14, 2011 by an anonymous user
If your home office is your principal place of business, you can deduct travel costs between the home office and the offices of your customers or clients.
Are there deductible commuting expenses?
Asked Monday, November 14, 2011 by an anonymous user
The IRS allows 2 exceptions. If you are on a business trip out of town you may deduct taxi fares and other transportation costs from your hotel to your first business call and all other transportation costs between business calls. Also the additional costs of transporting tools to work are deductible.
