Deduction for Rent if Work at Home?

[soko]

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I've been told this is a huge red flag for getting audited. Anyone know if this is true or urban legend?

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Seeing as how it's very easy to lie about this and it's very easy to even claim a number you think is correct when in fact is very wrong leads me to believe this is very likely a flag although I have no other proof besides speculation.

[FlFishOn]

Bend over Baby. This is a case where a smart taxpayer skips this legitimate deduction and recoups that loss somewhere else.

[AAAA]

fifteen years ago, it was a big red flag, but in the days of internet home businesses for almost everyone, i doubt IRS cares as much.

Has anyone who is really a tax accountatn ever considered the fact that many players are "on call" 24 hours a day as affiliate managers or even as players if a fish shows up. Does this do anything to make it easier to claim the deduction?

it has always made me angry that "big business" gets to deduct very expensive space and very high price items, but businesses that are actually trying to make a profit get taxed to the max.

[mackthefork]

It is abused regularly by people with poor risk management skills, so this is a distinct possibility, I am from the UK and things are much different here, the IRS and the Inland Revenue are very differently run organisations.

Mack

[bogey]

My accountant told me it is almost never worth trying to claim this because the risk of being audited is too high. Theres a lot of time involved when you get audited too, its not just bad if your not on the up and up.

[Olof]

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My accountant told me it is almost never worth trying to claim this because the risk of being audited is too high. Theres a lot of time involved when you get audited too, its not just bad if your not on the up and up.

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Is it really conceivable that the IRS would bother going to Thailand, where I understand KKF lives, just to measure the computer area in his studio apartment in order to stop him from deducting at most a few thousand dollars per year?

[mackthefork]

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My accountant told me it is almost never worth trying to claim this because the risk of being audited is too high. Theres a lot of time involved when you get audited too, its not just bad if your not on the up and up.

[/ QUOTE ]

Is it really conceivable that the IRS would bother going to Thailand, where I understand KKF lives, just to measure the computer area in his studio apartment in order to stop him from deducting at most a few thousand dollars per year?

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No, they probably send the local CIA operatives in for him, they'll gas him and kidnap him, and he'll wake up 4 days later by the roadside in Berlin wondering why his arse is sore.

Mack

[DonButtons]

What if you have a 2 bedroom apartment, and one bedroom is just the office where you play online poker, can you deduct let's say the s. feet of the office from your monthly rent?

so if you pay 3000 a month for 1000 sq. ft apartment, and your office is 300, you take 1000 off?

[Chadt74]

"Has anyone who is really a tax accountatn ever considered the fact that many players are "on call" 24 hours a day as affiliate managers or even as players if a fish shows up. Does this do anything to make it easier to claim the deduction?"

No, you have no idea what one must do to take this deduction. Being 'on call' has nothing to do with it.

The one person I know who took this deduction got interviewed, not audited, but the IRS did make adjustments to their return which had a negative impact on their overall return. I have only advised one person to take this deduction (I generally do not prepare taxes)since he has a 300lb printing press set up in his loft and even holds revenue generating classes in his loft. That should give you a better understanding of the home office deduction.

[dogmeat]

I've had a home office for 20 years - never been audited. Business use of your home is legit. Don't be a wuss, take every deduction that is offered. I knock a huge chunk of my income off by taking all of the deductions I am entitled to.

I use turbo tax software for my taxes, with regard to the home office, they compute the size of the office compared to your total square footage of your home (or apartment) and you get a deduction based on that percentage of your mortgage or rent.

For example, 2500 square foot home, 200 square foot office, 8% of total size.

Dogmeat [img]/images/graemlins/spade.gif[/img]