article · March 2006
Make Your Castle into a Tax Deductible Gold Mine
To constitute a principal office, you must render significant management or administration for your business out of your home AND not have another office where you render significant services.
- Use your home as your principal office,
- Use your home regularly for business, and
- Use an exclusive portion of your home for business
To constitute a principal office, you must render significant management or administration for your business out of your home AND not have another office where you render significant services.
case law generally requires 45 minutes a day, four to five days a week out of your home.
Tip: Take the home office deduction anyway even if your net income from your business doesn’t justify it. You may carryover any excess to future years forever!