Everyone that wants to be audited, please raise your hand.
Simply mention the phrase “home office tax deduction” and most people instantly think of an audit.
To say there is quite the stigma surrounding taking a home office tax deduction would be an understatement. On one hand, many individuals assume if they claim deductions for using part of their home for business purposes that they will automatically incur the wrath of an IRS audit. On the other hand, being able to write off a bunch of legitimate costs is extremely tempting and could save business owners and their employees a lot of money at tax time.
So should you use the tax deduction from running your business out of your home? What can you claim and what are the risks?