Business Tax Deductions
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Home Office Deduction.?
According to the IRC?26 U.S. Code???280A,?https://www.law.cornell.edu/uscode/text/26/280A
home-office must be in connection with your trade or business (or with your income-producing activity)
(1)Certain business use?Subsection (a) shall not apply to any item to the extent such item is allocable to a portion of the?dwelling unit?which is exclusively used on a regular basis?
(C)
When the taxpayer elects the?safe-harbor method (simplified method), no depreciation deduction for the home is allowed. It means that the taxpayer doesn?t have the depreciation recapture if they sell the home someday.
Also, you can?t claim any other expenses related to the home office if you elect the safe-harbor home office deduction.
1. There must be the exclusive use of a portion of the home for conducting business on a regular basis. For example, a taxpayer who uses an extra room to run their business can take a home office deduction only for that extra room so long as it is used both regularly and exclusively in the business.
2. The home must be the taxpayer?s principal place of business. A taxpayer can also meet this requirement if administrative or management activities are conducted at the home and there is no other location to perform these duties. Therefore, someone who conducts business outside of their home but also uses their home to conduct business may still qualify for a home office deduction?.
Meals and Entertainment Deduction?
According to https://www.law.cornell.edu/uscode/text/26/274?(k)Business meals
(1)In general, no?deduction shall be allowed under this chapter for the expense of any food or beverages unless?
(2)Exceptions?Paragraph (1) shall not apply to?
