Every year more people are concerned that taking a home office deduction isn’t worth the risk because the deduction could trigger an IRS audit. There is no question the home office deduction is a real, legitimate deduction that qualifying homeowners should not ignore.
Does the IRS check your home office?
The IRS will look into whether you comply with the “regular and exclusive” use test for your home office if it decides to visit your home business. This means that you must use your office regularly for business and your use of the area must be exclusive.
Can a personal office be used for an IRS audit?
There can be no personal use. It’s just the same as allowing your child to sleep there at night. It’s all personal. If you go to an IRS office for the audit, and if your business includes a home office, you might want to bring photos to show and substantiate that the area is indeed being used as an office.
Can you not have an IRS auditor come to your home?
Having a photo might give you a better chance of not having an auditor come to your home, but don’t count on it. The IRS might still want to see your home office, or an agent might even come by unannounced.
What should I bring to an IRS audit?
It’s all personal. If you go to an IRS office for the audit, and if your business includes a home office, you might want to bring photos to show and substantiate that the area is indeed being used as an office. Having a photo might give you a better chance of not having an auditor come to your home, but don’t count on it.
What are the rules for the Home Office deduction?
You have to be careful, however, in order to make sure that you’re legally able to utilize the home office deduction, and to that end, the IRS has some fairly stringent rules to follow that may help avoid being questioned on the deduction, or worse yet, audited. The IRS lists two basic requirements in order to qualify for the deduction: 1.