Posted by Larry/Ca on 1/10/07 11:02pm
Msg #170258

Home Office deduction

Not because the deduction itself is significant, I figure I really only exclusively use less than 2% of my home for this notary business, but rather because of other related tax issues, I may claim this deduction for this notary business for the first time this year.

I have claimed this before as a construction contractor using my home as my office. I know it is a red flag and was audited my first year of contracting, the deduction was allowed.

My question here, is this a popular deduction with signing agents and has anyone had this deduction disallowed?

Larry

Reply by DellaCa on 1/10/07 11:18pm
Msg #170262

Re: I claim it, no problem so far n/m

Reply by WDMD on 1/11/07 5:50am
Msg #170274

I wouldnt say the deduction is insignificant. I have been self employed for 25 years(20 years in construction), have always claimed the office in home deduction, never had a problem. Currently I have an office that I use exclusively that is 20x10. That works out to 13% of my home. Last year my office in home deduction was $3388.

Reply by John_NorCal on 1/11/07 9:01am
Msg #170288

I don't claim it because in my case it would be very insignificant, only 1%. But in cases where it is significant, it makes sense to use it. It will help to lower your SE taxes.