Each year the U.S. Census Bureau publishes what it refers to as nonemployer statistics that may provide information about the increased importance of the business use of taxpayers’ homes. A “nonemployer,” for purposes of the statistics, is defined as a business that has no paid employees, has annual business receipts of at least $1,000 and is subject to federal income taxes. These nonemployers may be organized as corporations, partnerships or sole proprietorships. Because they have no paid employees, nonemployers are more likely than others to operate their businesses from their homes and seek a home office tax deduction.

This course will examine the federal income tax deduction for business use of a home.

Learning Objectives:

• Identify how to qualify for a home office tax deduction


• Evaluate how to determine a taxpayer’s home office deduction using the actual expense and simplified methods


• Recognize the special home-office deduction rules that apply to daycare facilities


• Define the taxpayer’s home-office deduction recordkeeping requirements


• Identify where to take the deduction and the forms a tax preparer must use in connection with it