Estimated Tax Tip Savings: Depending on the size of your home and office—as well as your commute and business travel—home office deductions can easily save you $2,000-$5,000 in out-of-pocket taxes.
If you own a business and are not yet claiming home-office tax deductions, it may be time to visit IKEA and set one up, because these deductions can put thousands of extra dollars in your pocket over the coming year. And don’t let a small home or a tiny office deter you: The IRS understands and has created special rules so even a one-square-foot office can technically qualify you.
Good news: Setting up your small office to meet IRS requirements is fairly easy and inexpensive—and it pays off big-time. But, as with all tax-reduction strategies, you’ll want to comply carefully with the IRS rules and guidelines we lay out here.
Think you won’t qualify? Take the amazing case of Albert Mills. He successfully defended his home-office deduction in court despite living in an apartment of only ... Log in to view full article.