Increasing numbers of U.S. taxpayers are deriving some or all of their annual income from activities that permit them to deduct business expenses directly from that income. Many of these taxpayers operate businesses from offices located in their homes and may also qualify for a home-office deduction. Qualifying for a home-office deduction requires that the rules related to exclusive and regular use of the space in performing the activities incident to a trade or business be met.  

This course addresses the qualifications for a home office deduction and the actual expense and simplified methods of determining the deduction. In addition, it discusses the special home-office deduction rules applicable to daycare facilities and the recordkeeping requirements applicable to taking a home office deduction. It considers where the deduction should be taken and the forms a tax preparer should use in connection with the deduction.

Upon completion of this course, a tax return preparer should be able to:

• identify the home-office deduction qualification rules
• detect the types of home office use to which the exclusive use requirement does not apply
• identify the various types of taxpayer expenses that may be used to support a deduction for business use of a home
• identify the rules applicable to the simplified method of figuring the home-office deduction
• identify the tax forms on which a home-office deduction should be taken to recognize the recordkeeping requirements applicable to documents supporting a taxpayer's home-office deduction

Tax Year: 2023