Thanks for listening

Glad you liked it!

You are so welcome! I am so glad you have found them to be helpful. I'm excited for you too. Keep living the American Dream!

Yes you can. Remember he said you can only have one home office deduction.

If you use the standard method the depreciation recapture will apply when you sell your home. You will get the sale of home exemption on the rest of the gain. You only have to worry about the recapture. Make sure you consult with your accountant before going down this path.

An LLC is advised for legal protection. Without an LLC, the person filing a lawsuit against you can reach into your personal assets more easily.

If you have a small business, yhis would be included in the Schedule C, bottom half

You can have two home offices in the same personal residence. You could write-off either office under its own business. You just can’t write-off the SAME office space twice under two different businesses. Hope that makes sense. Mjk

@@MarkJKohler You are the man! Thank you sir

no. Home office is for self-employed individuals and goes on schedule c.

Can you quote the "administrative office exception" that was referenced in the video?

Yes, if you meet the other requirements. 😊👍

@@MarkJKohler Ok, what are the other requirements? 😏

Truebooks

Yes

If you work all year, you get the deduction all year.

No, unless they pay you as self employed with a 1099.

Thank you!!

Technically no. BUT I would still write off A LOT if not all of the vehicle. Make sure and maximize that deduction. I have a recent article on auto on my blog at www.markjkohler.com. Check it out.

@@MarkJKohler driving 50k to 70k a year makes it a no brainer for millage deduction unless you think otherwise. Sole prop is entity.

No sr. It is reported in the schedule C of your return if you are self emploed.

Yes

@@eduardoamezcuaea7919 Really? What if your real estate depreciation from rentals nets negative? you can still deduct home office right?

It is hard for me to offer advice in a KZfaq comment, but I would recommend reading my blog article on this topic: markjkohler.com/maximizing-the-home-office-deduction/ and if you have additional questions, I would reach out to my office, I am sure we will save you far more money than it will cost you. If you shoot my assistant an email whitney@kkoslawyers.com she will get you connected with someone who can help!

@@MarkJKohler thank you very much

You’re completely wrong. Obviously you missed my point about the “admin office”, which is current case law and allows you to bypass those two exclusive AND principal use rules for the administrative office exception. Yes Ben Affleck simplifies the process. But it is certainly not fraud. I’ve been teaching it for years. Study the caselaw on this and you’ll see. All the CE that I receive and I teach other CPAs around the country are in accordance with this opinion. By the way, I appreciate your comments and encourage them, but I’m offended you say fraud. Maybe ask, “Mark, what’s your basis for this opinion?” That’s the LAST thing I do. In fact I am a consumer advocate for watching out for fraudsters and helping put them away. Everything I teach is low risk and above board. Research my material more and buy my books. Thanks for the comment. Please follow up and I’ll do my best to reply

@@MarkJKohler ​​ my apologies for the insistence. However, by letting that go in the beginning without addressing that, you simply cannot do that because you use your kitchen table, you're letting a thought process marinate. If you open the can of worms I think it prudent to address the inconsistencies of the scene even if it makes the video longer. Also, no I didn't miss you point about the administrative office, and I addressed it clearly. Your follow up didn't address the substantial administrative duties required to be preformed. You completely bypassed that part of the comment. Because that IS the case law. It isn't to be construed as anyone that every does records here and there can take a home office deduction. It must be substantial. Substantial means daily. Someone who does books or records once a week or month cannot claim the home office as the administrative center. The separate nature of the space also applies... it is not relieved. There has to be an actual home office. Business use of home is only relieved on separate and exclusive assess in very few circumstances including home day care centers, using it for inventory etc. In general, you can't use the kitchen table for dinner and then to do books and records and deduct the square footage. Publication 587 goes all into this. It even gives examples of what constitutes the qualifying activity. I too am well versed in this. And the records you produce and activity go into the equation of allowance under audit. IF you show up with comingled, unprofessional records with scant evidence of the clear and consistent nature of your substantial administrative tasks performed, the deduction will not be allowed. No reasonable conferee or court of tax appeals would accept it. A rule like that allows the home office deduction when the office (which space used must also be substantiated under audit) is used as the administrative nerve center of the business. That nerve center then is considered a principle place of business to qualify for deduction. It also opens up the potential for erroneous claims when the activity does not support the deduction. The burden of proof always remains on the taxpayer. I guess my overall issue with the video is that the follow through was limited. Where do we disagree here? I'm sure we can pull the publications and IRC. If I remember the case you are referring to correctly, there was clear and daily tasks shown every day. I believe that's why the tests were developed. Citing the case is irreverent because we don't disagree on the ability to take a home office deduction under the administrative exceptions. The IRC was changes to allow it. What were talking about here is the facts and circumstances that would allow one to take the deduction. I guess I found the explanation too limited and it struck a nerve.

Excellent reply. Thank you so much for your thoroughness and exclamation. Very professional. I mean it. We probably don’t disagree on any substantive point. Yes, your right as well, I could also give a more detailed explanation in the video, but it is SO hard to get the average business owner to even listen or engage in a conversation about taxes, let alone such an in depth conversation. But again your point is well taken. I can do better. I guess I have to admit as well that I am probably a little more aggressive with home office than others. I truly believe that most small business owners sacrifice everything they have in their home and privacy to build their small business and the home office deduction is ridiculously low and far too stringent in application. In over 20 years, and tens of thousands of returns in our firm, we have never had it audited. That doesn’t justify fraud, but maybe a little more aggressive approach with circumstances justify it. Anyway, I’m probably rambling on. Thanks again for your follow up comment and kindness. The movie “The Accountant” still rocks! 😊😊

@@bk-xk4qh aren't you overlooking the situation where storing supplies (you mentioned inventory) it doesn't have to be exclusive? Was she storing the beads in the kitchen?