Home Office. No longer a write off!

Discussion in 'Business Operations' started by Charles, Mar 1, 2019.

  1. dishboy

    dishboy LawnSite Fanatic
    from zone 6
    Messages: 7,351

    That's not the point.
     
  2. dishboy

    dishboy LawnSite Fanatic
    from zone 6
    Messages: 7,351

    Urban legend by Quickbooks.....OK.
     
  3. OP
    OP
    Charles

    Charles Moderator, Friend, Angel
    Messages: 11,810

    I dont think that would be a trigger. Small lawn care folks usually do business out of our homes. Not sure what the savings is. Coming up on 29 years of doing it that way. No audits.. knock on wood
     
    tonygreek and Matthews Lawn Care like this.
  4. Matthews Lawn Care

    Matthews Lawn Care LawnSite Gold Member
    Messages: 3,008

    Really? What is the point then? If claiming a home office as a write off is an audit trigger, why haven’t I and others who claim it been audited?
     
    tonygreek likes this.
  5. dishboy

    dishboy LawnSite Fanatic
    from zone 6
    Messages: 7,351

    Deducting a home office increases your chance of being audited, just because you have not been audited does not make it not true. Just like driving a red vette increases your chance of a ticket....just because you have not gotten a ticket yet.........
     
  6. Matthews Lawn Care

    Matthews Lawn Care LawnSite Gold Member
    Messages: 3,008

    Owning a biz increases your chances of being audited. So, should we not own a biz in fear of an audit?

    The sun causes cancer. Should we just stay inside?

    An audit isn’t a problem unless your lying about something. While it may be inconvenient to be audited, as long as you keep good records and play within the IRS guidelines, there is nothing to worry about.
     
    Tara Ann and tonygreek like this.
  7. OP
    OP
    Charles

    Charles Moderator, Friend, Angel
    Messages: 11,810

    So where is this survey of home office audits?
     
  8. tonygreek

    tonygreek LawnSite Platinum Member
    Messages: 4,144

  9. dishboy

    dishboy LawnSite Fanatic
    from zone 6
    Messages: 7,351

    B
    You can find any result yiou want on google;
    https://www.kiplinger.com/slideshow...it-risks-when-you-re-self-employed/index.html

    But there’s no getting around the fact that the IRS is drawn to returns that claim home office write-offs. It has historically found success knocking down the deduction.
     
  10. Matthews Lawn Care

    Matthews Lawn Care LawnSite Gold Member
    Messages: 3,008

    Less than 1% of filed tax returns, with a gross of less than $500k, were audited.

    So if your worried about being audited, don’t make more than $500k.

    Regardless, if you file within the guidelines and have the records to back it up in the event of an audit, there is nothing to worry about.

    Seems to me the only people worried about an audit, are the ones who are trying to cheat the system.
     

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