|
1999 Tax Changes Are On The Horizon -- Plan for Them
- Liberalized Rules for Deducting Home Office Expenses Are to Take Effect. In a
significant taxpayer-friendly change from the rules that apply today, beginning in 1999, a
home office is to qualify as a principal place of business if:
|
We've posted our updated tax planning guide. Click here for planning tips and strategies for 1999 and beyond.
|
- It is used by the taxpayer to conduct administrative or management activities of a trade
or business, and
- There is no other fixed location of the trade or business at which the taxpayer conducts
substantial administrative or management activities.
The other requirements of the home office deduction rules would continue to apply,
including the requirement of exclusive and regular use and, in the case of employees, the
"convenience of the employer" rule.
Example: A doctor who consults
with her patients at various local hospitals would be able to claim a home office
deduction for a portion of her home that is exclusively and regularly used to conduct her
administrative or management activities of her trade or business. If she is an employee,
the use of the home would have to be for the convenience of her employer. Additionally,
she could not conduct any other significant administrative or management function at
another fixed location.
|
Tax
Guide
