5
My accountant told me I could write off my home office. She was dead wrong.
I set up a home office back in 2021 for my consulting gig. My accountant said I could deduct like $1,500 a year easy. Then I got audited last month by the IRS and they flagged the whole thing. Turns out because I also use that room for storage and my kid does homework in there, it doesn't count as exclusive use. Now I owe back taxes plus a $350 penalty. Has anyone else had an IRS audit over home office deductions? What did you do?
2 comments
Log in to join the discussion
Log In2 Comments
brooket436d ago
Wait, did they seriously flag you just because your kid uses the room sometimes too? I thought the rule was more about like, you couldn't have a bed or a TV in there, not that your kids couldn't do homework at the desk. My buddy had a similar thing happen but it was because he was renting out his basement on Airbnb and tried to call it a home office. The auditor told him if you can sleep there or eat there regularly, it's not an office. The whole thing just sounds so nitpicky honestly, like they're trying to catch anyone they can. I've always just avoided claiming it because I figured the hassle wasn't worth the few hundred bucks.
7
adam_baker5d agoTop Commenter
Can't believe they went after you for that. A kid doing homework in the room is completely different from using it as a bedroom.
4