In this episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday, with over 25 years of experience in tax and financial advising, debunks common myths surrounding the home office deduction. Often feared to be an audit trigger by taxpayers, Dr. Friday clarifies that claiming a home office on tax returns is no more likely to invite an IRS audit than any other deduction, such as miles or office expenses. The emphasis is on the accuracy and method of reporting rather than the deductions themselves. Dr. Friday encourages listeners not to forego legitimate deductions due to audit fears and offers her expertise to those needing guidance. Tune in to Dr. Friday’s call-in show every Saturday afternoon for more insightful tax advice.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one minute moment.
Home office deduction. Now guys, I’ve been doing taxes for 25 plus years and I remember the years where people would come in and say, “No, no, no, no. I can’t take a home office. That’s going to lead to an audit and I don’t want the IRS to audit me, so I’d rather not take a deduction versus get audited.” Now I will tell you, I’ve never been a big firm believer of that and now it’s been proven. Home offices do not trigger any more of an audit than if you take miles or if you take office costs. It’s important to understand that the numbers you’re putting on your tax return aren’t necessarily leading to an audit. It’s the way you report the information, right or wrong, in that return. If you need help, call me.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 right here on 99.7 WTN.