Given these facts, what would you advise T about taking a home-office deduction?
Please prepare a brief response ( generally 1-2 pages) to Chapter 18 research questions 26 &27.
Research questions:
26) Office in the Home. T comes to you for advice regarding the deductibility of ex-penses for maintaining an office in his home. T is self employed and works out of his home as a CPA, both meeting with clients and preparing tax returns in the home office. He also does administrative work related to his business at home. However, he frequently meets with clients at their homes and offices as well. Given these facts, what would you advise T about taking a home-office deduction? What other information would you need in order to answer the question? If T qualifies for a home office deduction, how is the amount of the deduction determined? T has heard about a simplified safe-harbor method for determining deductions. How does the simplified method work?
Partial List of Research Aids Section 280A(c)(1).
Rev. Proc. 2013-13.
27) Home Office Deduction. Refer to Problem 26. T frequently drives between his home and the homes and offices of clients. Can he deduct the transportation costs between his home and the other places or work?
Use the following format as a guideline and indicate your citations.
1. Descriiption of facts
2. List issues
3. Brief discussion of your conclusion
4. Brief discussion of the basis for your conclusion
5. Listing of citations