Substantiating Your Home Office Deduction (3)
2. Prepare a Floor Plan. Keep blueprints of your home to prove
the amount of space occupied by the home office. If blueprints are not available, make a drawing of your home showing the relationship of the home office’s square footage to the total square footage of the home.
This graphic shows a typical house floor plan indicating the
space occupied by a home office: Using a floor plan with the actual square footage of your home such as this one, you can easily calculate how much square footage you can deduct for a home office. You can also maximize this space using different computing methods. (For more information on these maximizing methods, refer to Appendix D.)
3. Prominently Display Home Office Address. Put your address and telephone number on business cards and stationery.12 The IRS takes the position that if people don’t know you’re alive and kicking somewhere, you can’t take a home office deduction.
4. Use a Guest Log. If you physically meet and greet clients at home
on a regular basis, you can absolutely prove your home office exists using a guest log. Every time clients come to your home, have them write down their name, address, and occupation.
Taken from : Money Mastery “10 Principles That Will Change
Your Financial Life Forever
Category: Uncategorized