Tax reduction strategies for a home based office!

Sandy Botkin CPA. Esq.
Copyright 2001, all rights reserved

Beginning in 1999, Congress liberalized the home office rules to such an extent that many home based businesses and especially network marketing businesses can legally, morally and ethically claim the benefits of the deduction. In fact, when I analyzed the numbers, the benefit of claiming this deduction can result in thousands in your pocket every year. Thus, if you have an accountant that states that this deduction isn’t worth it, they don’t understand its immense benefit

Requirements of a Health Home Office: To be eligible for the home office deduction for your home-based business, you must meet several requirements:

1. Use your home as your principal office,
2. Use your home regularly for business, and
3. Use an exclusive portion of your home for business

Principal Office requirement: Recently, Congress liberalized this in order to allow most home based businesses and network marketing businesses this deduction.  To constitute a principal office, you must render significant management or administration for your business out of your home AND not have another office where you render significant services. Significant management or administration means (more…)

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