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Originally Posted by hyper
any home office deduction raises your audit risk, however i would think it would get reviewed prior to an actual audit. 80 sf seems realistic. its an 8 x 10 room.
maybe its just a rumor i heard somewhere, but in 8 years of using it, i haven't been audited, so i'm sticking with it
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I have no idea why people would raise their audit risk like that for a mere $10-$20 tax savings. Not only that, but when you sell your house, that portion will be considered business property not subject to the section 121 homeowner's exclusion! You may have been using it for 8 years, but it only takes one audit to fuck you over for the previous 3 year's tax returns.