Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
How do I allocate indirect expenses in my home office?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Generally the number of rooms identified as the home office divided by total rooms equals your percentage of business use.
What expenses are deductible in my home office?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
Expenses directly allocated to the home office such as painting the office or buying furniture for the office are 100% deductible. Other expenses indirectly incurred are deductible at a business expense allocation percentage. These would include Real estate taxes, mortgage interest, depreciation, utilities, rent, insurance, snow removal and security.
What is the IRS publication that explains home office expenses?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
IRS publication 587 explains the details of deducting a home office.
Do I lose any of my home sale exclusion if I claim a home office deduction?
Asked Monday, November 28, 2011 by an anonymous userCPA Answer:
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 userCPA Answer:
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.
Are my cell phone calls made while commuting to work deductible?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
The IRS states that any cell phone calls made while commuting to work are not deductible.
What is the difference between Travel and Commuting expenses?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
Generally, commuting from your home to your place of business when you are not away from home are not deductible.
Unreimbursed employee travel are deductible but subject to the 2% of AGI floor on Schedule A. Self-employed individuals claim 100% of the travel expenses on Schedule C.
Unreimbursed employee travel are deductible but subject to the 2% of AGI floor on Schedule A. Self-employed individuals claim 100% of the travel expenses on Schedule C.
Are my meal costs deductible?
Asked Monday, November 14, 2011 by an anonymous userCPA Answer:
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 userCPA Answer:
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.