What does the IRS audit manual say about the home office for an individual who operates his or her business as a corporation?The information below was provided to us from Bradford Tax Institute.
What does the IRS audit manual say about the home office for an individual who operates his or her business as a corporation?
You will be interested in two boilerplate explanations from the Internal Revenue Manual that examiners use to explain why the IRS is denying the home-office deduction:
If you want to avoid the disallowances above and achieve a full deduction for the home office, follow these directions.
Your corporation gets the deduction for its reimbursement of your employee expenses. But with this deduction comes the need for proof. Make sure you submit proof to your corporation that backs up the deduction—for example:
Planning tip. Complete IRS Form 8829 showing your home-office expenses for the year. Do not file this form with your tax return. Instead, attach the form to an expense report that you give to your corporation as the basis for corporate reimbursement to you for the home-office expenses
May 5, 2022 | DWHuff Consulting
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