#1
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taxes and rent
If I file as self-employed, can I deduct some of my rent money as a home office?
Is there a good site/old post that lists poker-related deductions? thanks in advance, |
#2
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Re: taxes and rent
You need to consult a Tax expert. There are a lot of problems using your home/apt for tax deductions--at least the first year. After that the IRS recognizes that you use your house/apt and will skim over your return. Not so the first time.
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#3
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Re: taxes and rent
why is this? can you elaborate on this?
and you say not to do this during your "first year"... but first year of what... filing as a pro? i own my own home and was planning on deducting home office expenses this year... which is my first year filing as a pro |
#4
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Re: taxes and rent
If you rent, then deducting some home office expenses can help you out.
If you own (especially if you bought your home recently and as such are paying mostly interest and little principal), it isn't worth it to deduct additional home office expenses (your mortgage). You will be deducting a trivial amount (assuming you are already deducting the interest paid through an itemized deduction) which just isn't worth it considering the huge red flag that pops up when you claim home office deductions. Remember, a red flag does not mean it is illegal, only that it is a highly abused deduction and the IRS knows it. That being said, the IRS loves to inquire on anyone who claims a large amount of gambling activity on their taxes, either gross method or by filing as a pro. My advice would be not to take the home office deduction unless it will save you a significant amount. And if you do take it, you better have the records to back it up. All that being said, your risk of being audited increases in proportion to your AGI. The higher the AGI, the more scrutiny your return will face. |
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