Business Use of a Home - 1 Hour CPE

Learn the qualification rules, deduction methods, allowable expenses, and documentation requirements for claiming the business use of a home deduction.

Learning Objective:  Learn the qualification tests (exclusive and regular use, principal place of business, and special exceptions for daycare, inventory storage, or a separate structure), how to measure and document the space (square footage, 15-day rules, and meeting-with-customers requirements), and the differences between the simplified and regular methods.The curriculum covers allowable expenses and limitations, including allocating mortgage interest, property taxes and SALT issues, utilities, casualty losses, gross income limitations, and carryovers. Students will also learn self-employment tax and reporting rules, as well as how depreciation, bonus depreciation, and Section 179 interact with the regular method (including basis, selecting methods, switching methods, and potential recapture upon sale). Additional topics include special situations involving multiple businesses or offices, rentals to an employer, daycare operations, motor home use, and taxpayers sharing a home, along with the forms, documentation, and practical planning steps preparers should use to compute and substantiate the deduction.