Corporations Reduce IRS Audit of Home-Office Deductions. How?
Are you overly suspicious that your home-office deduction will invite an IRS audit?
Well. Countless taxpayers are not able to take advantage of a significant deduction that they’re entitled to because they’re afraid of Uncle Sam. You are not only the one.
Our fact-filled article can help you in three ways:
1. There is good news if you’re running a corporation.
Your home-office deduction doesn’t show on either your return or your corporate if you have the corporation reimburse the office as an employee business expense if you operate as a corporation.
2. An easy way to make sure you’ll come out a winner.
The first step to getting the dollar-amount for the corporate reimbursement is to complete IRS Form 8829 just as if you were going to claim the deduction personally (which you are not doing). When you complete the form, your corporate reimbursement will include the home-office percentage of what you spend for mortgage interest and property taxes.
3. The important expense report rules.
The corporation may reimburse expenses only if it has adequate proof of the costs. Therefore, make your corporation demand-proof. This means you and your employees must substantiate the regular use, restrictive rules, and administrative use. With proper proof, your corporation gets the tax deduction and you, as an employee, get an employee reimbursement that’s not taxable income to you!