Mark Kohler breaks down home office tax deductions. You need a regular, exclusive space measured in square footage, even a small desk counts. The IRS lets you deduct administrative work done at home even if you have an office elsewhere.
The rule for home office is I first need a regular and exclusive space defined by square footage in my home that I use for my business. Now, that may only be 10 square feet. It could be the size of a desk. That's my regular space I use in my home. Studio, apartment, condo, a home I rent or a home I own. Doesn't matter. What I'm worried about is the square footage. Where's that space? Is that 100 square feet, 200 square feet? And I use that place exclusively for my home office. Now, the second rule is it needs to be my principal place of doing business. Historically, that would mean I don't do business anywhere else. Is my principal place of doing business. Well, I hate that rule, and so do a lot of other people, because I could have an office across town and still need to come home and do administrative duties. So a few years ago, there was a huge case, and due to this case, the IRS now allows for an administrative use exception, where even if I have office across town and I come home and then I do administrative duties, well, I'm able to do that even though it's not my principal place of doing business. This. It's the administrative exception.
The secret to managing your family's future #financialfreedom #estateplanning #shorts
Moving Property to an LLC: What They Don't Tell You #realestate #investing #tips
